Before signing a residential purchase agreement, check that it accurately records the deal, understand each contingency and deadline, and know what happens to your deposit if the transaction changes. Read the entire agreement and every addendum or document it incorporates. Because contract forms, laws, and practices vary by state, this general U.S. guide cannot determine your rights under a specific agreement; ask a local real estate attorney about unclear language, unusual terms, title questions, or a complex purchase.
Start with the complete agreement
Review the purchase agreement from beginning to end, including every addendum and any document incorporated by reference. Confirm that the written terms match what you and the seller actually agreed to. A signed offer can create obligations even when inspection, financing, or other contingencies remain. For example, Oregon’s rule states that a signed offer is an offer to purchase regardless of pending inspections, conditions, or contingencies; that is an Oregon-specific rule, not a universal statement of law. Oregon Administrative Rules, § 863-015-0135.
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- Buyer and seller names, and the property address or legal description
- Purchase price and included fixtures, appliances, or other personal property
- Earnest-money amount, payment date, holder, and handling
- Financing terms, contingencies, inspection provisions, and remedies
- Closing, possession, occupancy, repair, and title terms
- All dates, notice requirements, addenda, and referenced documents
After signing, obtain and keep a complete copy of the agreement and all signed attachments.
Check the money terms and earnest-money deposit
Verify the purchase price and the earnest-money deposit separately. Earnest money is not the down payment: it is a good-faith deposit, commonly held by a third party in escrow until closing or resolution of a dispute. It may be credited toward the buyer’s down payment or closing costs at closing. Whether it is refundable depends on the contract and applicable law; the National Association of REALTORS® says a deposit may be refunded when a contingency such as inspection, appraisal, or financing cannot be resolved. NAR: Escrow and Earnest Money.
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- How much is due, and by what date?
- Who will hold the deposit, and how will it be handled?
- Under what conditions can it be returned, retained, or applied to closing?
Understand financing and appraisal contingencies
A financing contingency addresses the risk that you cannot obtain a mortgage on the terms the contract requires. Check which loan terms matter, how much time you have to secure approval, what notice is required if approval is delayed or denied, and what the agreement says happens next. The Consumer Financial Protection Bureau recommends considering a financing contingency so a buyer who cannot get a loan is not contractually required to buy. CFPB: Find the right home.
An appraisal contingency concerns the appraised value of the property, not loan approval generally. Read what happens if the appraisal comes in below the purchase price: the agreement may set out a way to renegotiate, proceed, or terminate, but the available outcomes depend on the exact wording. Financing and appraisal are distinct contingencies; check each one rather than assuming one protects you from the other. NAR: Real Estate Sales Contract Contingencies.
Read the inspection terms as a process
Find the inspection deadline, what inspections are covered, how results must be reported, and what response the agreement allows if you find a problem. Depending on the contract, you may be able to seek repairs or a credit, proceed, or cancel. A satisfactory-inspection contingency may allow cancellation without penalty if you are dissatisfied, subject to the agreement’s terms. CFPB: Schedule a home inspection.
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Attend the inspection if possible, and ask what components are and are not covered. Do not assume that an inspection automatically requires the seller to make repairs or gives you an unlimited right to cancel; the contract and local law control.
Confirm closing, possession, title, and included items
Closing and possession may not occur on the same date. Check when the sale is expected to close, when you may take possession, and whether any occupancy arrangement applies. Confirm which appliances, fixtures, or other items stay with the property, who is responsible for agreed repairs, and what the agreement requires about title evidence or title defects. Also identify which party chooses or pays for closing services.
If you are buying with another person, decide how you want to hold ownership. A real estate attorney can help ensure the deed reflects the co-buyers’ intended form of ownership. NAR: Working With a Real Estate Attorney.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Put deadlines and changes in writing
Make a calendar of every deposit, financing, appraisal, inspection, title, and closing deadline. For each, note who must act, what notice or evidence is required, how it must be delivered, and the recipient. Missing a deadline or using the wrong notice method can affect the protections the contract provides.
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Do not rely on a verbal promise to change the deal. Have any extension, repair promise, credit, or waiver documented in a signed writing in the form required by the agreement and local rules.
Know when to get a real estate attorney
Rules on attorney involvement differ by state; verify the requirements where the property is located. Even where a lawyer is optional, a local real estate attorney can explain unclear language, evaluate contingency deadlines, and flag legal issues. NAR identifies renovation loans, probate or trust ownership, buying with others, seller financing, and title concerns as examples of situations where legal help may be useful. NAR: Working With a Real Estate Attorney.
Do not confuse the sale contract with mortgage closing documents
The purchase agreement sets out obligations between buyer and seller. If you use a mortgage, you will later receive separate loan and closing documents. For most covered mortgage transactions, the lender must provide the Closing Disclosure three business days before closing. Compare it with your Loan Estimate and review the loan amount, term, interest rate, payment, and costs. This later disclosure does not replace reviewing the purchase agreement before signing. CFPB: Mortgage closing process.
Quick Recap
Pre-signing checklist
- Names, property description, price, and included items are correct.
- Deposit amount, due date, holder, and refund conditions are clear.
- Financing and appraisal provisions fit your actual loan plan and risk tolerance.
- Inspection scope, deadline, notice method, and possible responses are understood.
- Closing, possession, occupancy, title, and repair terms are clear.
- Every deadline and notice recipient is on your calendar.
- All addenda and referenced documents are present, and verbal promises appear in the required signed writing.
- You have raised questions about local law, unclear terms, shared ownership, title, or unusual provisions with a local real estate attorney before signing.
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