Summary

22 items · 30–60 minutes

Why the Purchase Agreement Deserves More Than a Quick Skim

The purchase agreement — sometimes called a sales contract or purchase and sale agreement — is the document that transforms an accepted offer into a legally binding commitment. Unlike a lease, which governs an ongoing relationship, this contract sets the terms for a single, high-stakes transaction that may be the largest financial decision of your life.

Yet many buyers sign within hours of receiving the document, deferring review to their agent without personally understanding what they've agreed to. That approach can lead to missed deadlines, unexpected costs, or forfeited earnest money deposits. This checklist is designed to slow you down in the best possible way — giving you a structured framework to verify each critical element before your signature makes it official.

For context on how contingencies work and what's at stake when you waive them in competitive markets, see our companion article on contingencies that protect homebuyers. If you're purchasing new construction, note that contract terms differ meaningfully — our guide on new construction vs. existing homes covers those distinctions.

Verbal Agreements Do Not Exist in Real Estate

In real estate transactions, if it isn't written into the contract, it isn't legally enforceable. Any item the seller promised verbally — leaving the refrigerator, completing a repair, allowing early access — must be documented in the purchase agreement or a signed addendum. Do not proceed to closing assuming a verbal assurance will be honored.

What to Bring to Your Contract Review

Before working through this checklist, gather the following. Having these materials in hand lets you cross-reference figures and catch discrepancies on the spot.

Required

The Purchase Agreement (all pages and addenda)

The primary document you're reviewing — ensure you have a complete copy, not just a summary.

Required

Lender's Loan Estimate

Cross-reference the loan amount, type, and projected closing costs against the contract terms.

Required

Your Real Estate Attorney or Agent

A licensed professional should review the contract alongside you to catch jurisdiction-specific issues.

Required

Property Disclosure Statement

The seller's written disclosure of known material defects — compare against inspection findings.

Optional

HOA Documents (if applicable)

Review bylaws, financials, and meeting minutes to identify any assessments or restrictions that affect your decision.

Required

Personal Calendar

Log every contract deadline immediately so you can track and meet each obligation.

The Full Buyer's Checklist

Work through each group systematically. Items marked must are non-negotiable review points — do not sign until you've confirmed these. Items marked should are strongly recommended; skipping them raises your risk. Nice-to-have items add an extra layer of protection when time allows.

Parties, Property & Price

Confirm that every buyer's and seller's legal name is spelled correctly and matches government-issued ID. Must
Verify the property's full legal description and parcel number — not just the street address — matches public records. Must
Confirm the agreed purchase price matches what was verbally accepted, to the dollar. Must
Identify what personal property (appliances, fixtures, window treatments) is explicitly included or excluded in writing. Should

Earnest Money

Note the earnest money deposit amount, the due date, and the escrow holder who will hold the funds. Must
Understand the exact conditions under which you forfeit your earnest money if you back out. Must
Confirm the refund process and timeline if a contingency is not met and you cancel within the allowed window. Must

Contingencies

Verify that a financing contingency is present, specifying loan type, amount, and the deadline by which you must secure approval. Must
Confirm an inspection contingency is included, with the number of days you have to complete inspections and the process for requesting repairs or credits. Must
Check for an appraisal contingency that protects you if the home appraises below the purchase price. Must
If you have a home to sell first, ensure a home-sale contingency is documented with a clear timeline. Should
Review any title contingency language confirming you will receive clear, insurable title at closing. Should

Key Dates & Deadlines

Record every deadline in the contract — inspection period end date, financing approval deadline, appraisal deadline, and closing date — on your personal calendar immediately. Must
Confirm the closing date is realistic given your lender's estimated timeline and any known scheduling constraints. Must
Identify the possession date — when you legally take occupancy — and whether it differs from the closing date. Should

Closing Costs & Credits

Review any seller concessions or credits negotiated into the contract and confirm they are explicitly stated with dollar amounts. Must
Identify which party is responsible for each category of closing cost — title insurance, transfer taxes, escrow fees — and compare against your lender's Loan Estimate. Should
Confirm how property taxes and HOA dues will be prorated between buyer and seller. Should

Disclosures & Final Steps

Confirm that all required seller disclosure documents (condition reports, HOA financials, lead paint disclosures if applicable) are attached or will be delivered within the required window. Must
Ask your real estate attorney or agent to flag any non-standard addenda or clauses that differ from your state's standard contract form. Must
Schedule a final walk-through before closing to confirm the property's condition matches what was agreed upon. Should
Keep a signed copy of the fully executed agreement and all addenda in a secure, accessible location. Nice to have

Missing a Deadline Can Cost You Thousands

Contract deadlines for inspections, financing, and appraisals are not suggestions — they are enforceable conditions. Failing to act within the specified window can cause you to lose your contingency protection, meaning you may forfeit your earnest money deposit if you back out. Set calendar reminders the moment you receive a fully executed contract, and confirm receipt of every deadline-driven document in writing.

Waiving Contingencies Carries Real Risk

In competitive markets, buyers are sometimes pressured to waive inspection or financing contingencies to strengthen their offer. Doing so removes critical safeguards: a waived inspection contingency means accepting the property in its current condition regardless of what is discovered, and waiving financing means you could forfeit earnest money if your loan falls through. Understand the full financial exposure before agreeing to any waiver.

This checklist is for general informational purposes only and does not constitute legal, financial, or real estate advice. Contract terms and requirements vary by state and local jurisdiction. Always consult a licensed real estate attorney and a qualified real estate professional before signing any purchase agreement.

Share

Home & Real Estate Editorial Team · Contributor

Home & Real Estate Editorial Team is the collective byline for our editorial team and contributor network. Articles published under this byline or an editorial pen name are researched, written, and reviewed according to our editorial standards for clarity, consistency, and independence before publication.

The content on this site is for informational purposes only and is not a substitute for professional advice. Always consult a qualified professional for guidance specific to your situation.