Reading a purchase contract

The purchase contract sets out what you're agreeing to buy, the price, and the rules for getting from offer to closing. Read it carefully before you sign, and ask questions about anything you don't understand.

Key parts to review

• Price and terms: The agreed purchase price and any included or excluded items.
• Earnest money: The deposit you provide to show good faith, and when it's due.
• Contingencies: Conditions that let you back out or renegotiate, such as an inspection or financing contingency. Each one has a deadline.
• Deadlines: Dates for inspections, repairs, financing, and closing. Missing one can change your rights.
• Closing date and possession: When ownership transfers and when you can move in.

Why deadlines matter

Many contingencies end on a set date. If you don't act in time, you may lose the right to cancel or negotiate. Mark every deadline on your calendar as soon as the contract is signed.

Before you sign

Ask your agent or attorney to walk you through the contract. If you have questions about a clause, get a clear answer in writing.