Can this agreement be signed electronically?

Yes. Electronic signatures are generally enforceable under the federal ESIGN framework (15 U.S.C. §7001) and state UETA laws where adopted. Verify any state-specific exceptions and ensure intent, consent, attribution, and retention to meet the ESIGN legal validity test.

Do I need a notary or witnesses?

Notarization requirements depend on the instrument and state. Deeds and certain acknowledgements typically require notary acknowledgement; witness counts vary by state. Check local recording office rules before execution to ensure recordability.

What happens if a buyer changes financing terms?

If the buyer cannot obtain financing by the contingency deadline the contract usually allows termination with deposit return, unless the agreement includes a different cure or waiver procedure agreed by both parties.

How are change orders documented and priced?

Require written signed change orders referencing the original contract, specifying scope, price, and schedule impact. Untested verbal changes risk dispute and may not be enforceable.

Who can sign on behalf of a company or LLC?

An authorized officer or manager with signing authority should sign; attach a corporate resolution or authority document if the contracting party is an entity to confirm authority at closing.

How do I amend the agreement after execution?

Use a written amendment signed by all parties describing changes, effective date, and any adjusted schedules; email confirmations alone may be insufficient unless the contract permits electronic amendments and consent is documented.

Electronic Signature
Templates
Real estate
Builders Purchase Agreement

Builders Purchase Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BUILDERS PURCHASE AGREEMENT

This Builders Purchase Agreement (the Agreement) is entered into as of by and between Seller (Builder): and Buyer: .

1. Parties and Notices

Seller (Builder) Contact Buyer Contact

All notices under this Agreement shall be sent to the addresses above or to the following notice addresses (if different): Seller Notice: ; Buyer Notice: .

2. Property Identification

Property Address Parcel / APN Number Legal Description

3. Purchase Terms

Purchase Price: $ payable as follows: Earnest Money Deposit of $ due by to Escrow Agent: .

Escrow Agent Address

4. Financing and Contingencies

This Agreement is: Contingent upon Buyer obtaining loan financing on terms acceptable to Buyer by .

Requested Loan Amount

5. Construction, Completion and Inspection

Builder agrees to complete construction in accordance with the plans, specifications and building code requirements. Estimated Completion Date: .

Inspection Period Punchlist / Change Orders

6. Warranties and Completion Standards

Builder warrants title (subject to permitted exceptions) and that the Work will be performed in a good and workmanlike manner consistent with building industry standards. Express warranty period: from date of final occupancy.

Additional Warranty Provisions

7. Closing and Possession

Closing shall occur on or before at the offices of: . Possession shall be delivered to Buyer on unless otherwise agreed in writing.

8. Title, Prorations and Taxes

Title shall be conveyed by general warranty deed (or other instrument as agreed) free of liens except permitted encumbrances. Real property taxes, assessments, HOA dues and other items shall be prorated as of the closing date. Buyer shall pay title insurance premium, except as otherwise agreed in writing.

Permitted Exceptions / Title Requirements

9. Disclosures and Condition of Property

Lead-Based Paint (applicable only if property includes pre-existing improvements): Known lead-based paint or hazards? Yes No

Mold or water intrusion known? Yes No

Additional Disclosures / Prior Damage

10. Default; Remedies; Liquidated Damages

If Buyer fails to perform its obligations under this Agreement, Seller may retain the earnest money as liquidated damages or pursue specific performance or other remedies at law or equity. If Seller fails to deliver title or perform material obligations, Buyer may (a) terminate and receive return of earnest money, (b) seek specific performance, or (c) pursue other remedies in law or equity. The parties acknowledge that actual damages may be difficult to ascertain and that earnest money constitutes a reasonable pre-estimate of damages.

11. Insurance; Risk of Loss

Risk of loss to the property prior to closing shall remain with Seller. Builder shall maintain builder's risk insurance during construction and provide evidence of such coverage upon request. After possession is delivered, Buyer shall obtain homeowners insurance.

12. Homeowners Association

Is the Property subject to a homeowners association (HOA)? Yes No

HOA Name and Contact / Documents

13. Representations and Covenants

Each party represents and warrants that it has full authority to enter into this Agreement and that the signatory is authorized to bind the party. Builder represents that all permits required for construction have been obtained and that there are no material violations of building codes known to Builder as of the date of this Agreement except as disclosed in writing.

14. Miscellaneous

Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of .

Entire Agreement: This Agreement, together with any exhibits and addenda executed by the parties, constitutes the entire agreement between the parties and supersedes all prior negotiations, representations and agreements, whether written or oral. Any modification must be in writing and signed by both parties.

Additional Terms or Addenda

15. Escrow and Closing Instructions

Escrow Instructions / Special Closing Conditions

Buyer acknowledges receipt of plans, specifications and any written disclosures required by law and accepts the same except as otherwise noted in writing and attached to this Agreement.

Signatures

Seller (Builder) Printed Name:

By:

Date:

Buyer Printed Name:

By:

Date:

What a Builders Purchase Agreement covers

A Builders Purchase Agreement is a written contract between a buyer and a builder or developer establishing the terms for purchasing a newly constructed home or lot. It sets the sale price, deposit and payment schedule, construction specifications, change-order process, completion and closing dates, warranties, and responsibilities for permits and inspections. The agreement allocates risk for delays, defects, and cost overruns and typically includes contingencies for financing, inspection, and zoning. In the United States these contracts can be executed electronically where permitted under ESIGN and state electronic transaction laws.

Why a complete Builders Purchase Agreement matters

A clear, signed agreement reduces disputes, documents buyer and builder obligations, protects deposits, defines remedies for defects or delays, and supports lender and title requirements. Properly drafted terms streamline closing and help enforce warranties and change-order procedures under applicable state law.

Who typically prepares and signs this agreement

Parties and professionals commonly involved in a Builders Purchase Agreement.

Buyers — individuals, couples, or LLCs purchasing a new construction home; they review specs, financing contingencies, and warranty terms.
Builders / Developers — licensed contractors or development firms that supply plans, schedules, and construction warranties; they control specifications and change-order protocols.
Lenders and title agents — bankers and title companies verify contract terms, confirm financing contingencies, and prepare closing documents.

Each signer should have authority to bind their party and confirm financing and insurance before execution.

Real-world examples of Builders Purchase Agreement use

Practical examples show how agreements handle financing, timelines, and on-site changes.

Small Builder Sale

A regional builder sells a spec home to a first-time buyer

Deposit held in escrow until inspection period ends
The agreement allocated repair obligations and included a 12-month workmanship warranty, preventing post-closing disputes.

Custom Home Contract

A homeowner commissions a custom build with phased payments linked to milestones

Lender disburses funds at framing and inspection milestones
The contract required signed change orders and withheld final payment until certificate of occupancy was delivered, ensuring completion to specifications.

Core sections to include in a professional agreement

A thorough Builders Purchase Agreement organizes obligations, timelines, financial terms, and remedies so both parties know expectations and legal rights.

Parties

Full legal names and entity types for buyer, builder, and lender; include contact details and authorized representative names for execution and notices.

Property Description

Legal description, lot number, address, and any easements or HOA restrictions; reference the site plan and exhibits that define deliverables.

Price & Payment

Purchase price, deposit amount, schedule of draws or milestones, and conditions for release of funds; describe escrow and default remedies.

Specifications

Detailed plan, materials, finishes, and included appliances; reference attached spec sheets and clarify allowance vs fixed items.

Timeline & Milestones

Start and completion dates, inspection windows, cure periods, and lender or permit dependencies that may adjust the schedule.

Warranties & Remedies

Express workmanship and material warranties, procedures for defect claims, dispute resolution, and rights to remedies or liquidated damages.

Step-by-step: completing a Builders Purchase Agreement

Follow these steps to prepare and execute the agreement accurately and efficiently.

01

Prepare: Gather buyer ID, builder licensing, plans, and lender preapproval documentation.
02

Draft: Populate parties, property, price, schedule, and exhibits in the contract template.
03

Review: Have counsel, lender, and title agent review contingencies, insurance, and recording needs.
04

Execute: All authorized signers sign and date; distribute executed copies to escrow, title, and lender.

Typical digital workflow settings for online completion

Configure routing, authentication, and required attachments before sending to signers.

Field	Configuration
Authentication	Email link plus optional SMS code
Signer Order	Builder signs first, then buyer, then lender
Conditional Fields	Show change-order fields only if selections indicate upgrades
Reminders	Automatic reminders at 3 and 7 days

Technical and file requirements for e‑submission

Make sure your platform supports required formats, authentication, and integrations before sending.

File formats: PDF, DOCX supported
Integrations: Procore, NetSuite, Salesforce
Authentication: Email, SMS code, SAML/SSO

Confirm audit trail capture, certificate of completion, and secure storage to preserve evidentiary value.

Typical online signing flow for the agreement

An electronic signing workflow follows a few standard steps from upload to final copies.

Upload: Sender uploads the completed draft to the signing platform.
Prepare: Place signature, initial, date, and conditional fields on the document.
Send: Generate signer link or email invite with authentication settings.
Complete: Signers authenticate, sign, and receive final signed copies and audit trail.

Common timing and deadline items to track

Track contract-specific deadlines to avoid forfeiture, loan denial, or closing delays.

Deposit due date:

Date when buyer must deliver earnest money to escrow or risk default.

Financing contingency deadline:

Final date to obtain lender commitment or terminate under contingency.

Inspection period:

Window for buyer inspections and repair requests before escrow release.

Completion/certificate date:

Date for certificate of occupancy or equivalent completion milestone.

Closing date:

Date funds transfer, deed conveyance, and title recording occur.

Key project milestones from contract to closing

A sequential milestone view helps coordinate lender disbursements, inspections, and final delivery.

01

Contract Execution

Agreement signed and deposit placed into escrow, triggering contingency periods.

02

Construction Start

Builder mobilizes, obtains permits, and begins site work per schedule.

03

Inspections & Punchlist

Final inspections identify items for builder correction before final payment.

04

Closing & Handover

Title records deed, lender funds, and keys transfer to buyer.

Common mistakes to avoid when preparing the agreement

Using an incomplete property description or failing to attach the site plan can create title and performance disputes later.
Leaving financing contingencies vague or missing lender approval timelines risks buyer forfeiture if funding falls through.
Not defining the change-order process or cost allowance caps causes repeated disputes over upgrades and extra charges.
Failing to confirm authorized signers or entity authority can void execution and delay closing with title complications.

Security and compliance controls to check

Encryption in transit: TLS 1.2 / 1.3

Encryption at rest: AES-256

Certifications: SOC 2 Type II, ISO 27001

Legal frameworks: ESIGN, UETA compliance

HIPAA handling: BAA required for PHI

Audit trail: Timestamp, IP, action log

Risks and potential consequences of errors

Deposit Forfeiture: Buyer may lose earnest money

Construction Delays: Schedule shifts and added costs

Title Issues: Recording problems or liens

Financing Failure: Contract termination risk

Warranty Gaps: Unclear post-closing obligations

Legal Disputes: Costly litigation or arbitration

Typical eSignature vendor pricing and feature snapshot

Compare common plan and feature criteria for eSignature vendors; signNow is listed first per pricing and feature data.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	Varies by plan
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions about Builders Purchase Agreements

Answers to common execution, validity, and post‑signing questions for Buyers, Builders, lenders, and title professionals.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are generally enforceable under the federal ESIGN framework (15 U.S.C. §7001) and state UETA laws where adopted. Verify any state-specific exceptions and ensure intent, consent, attribution, and retention to meet the ESIGN legal validity test.
Do I need a notary or witnesses?
Notarization requirements depend on the instrument and state. Deeds and certain acknowledgements typically require notary acknowledgement; witness counts vary by state. Check local recording office rules before execution to ensure recordability.
What happens if a buyer changes financing terms?
If the buyer cannot obtain financing by the contingency deadline the contract usually allows termination with deposit return, unless the agreement includes a different cure or waiver procedure agreed by both parties.
How are change orders documented and priced?
Require written signed change orders referencing the original contract, specifying scope, price, and schedule impact. Untested verbal changes risk dispute and may not be enforceable.
Who can sign on behalf of a company or LLC?
An authorized officer or manager with signing authority should sign; attach a corporate resolution or authority document if the contracting party is an entity to confirm authority at closing.
How do I amend the agreement after execution?
Use a written amendment signed by all parties describing changes, effective date, and any adjusted schedules; email confirmations alone may be insufficient unless the contract permits electronic amendments and consent is documented.

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