Purchase Price
State the total consideration, allocation of cash versus financed amounts, deposit amount, escrow instructions, and any holdbacks or adjustments at closing.
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Purchase Contract
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What a Purchase Contract Is and when it applies
Why a clear Purchase Contract matters
A well-drafted Purchase Contract reduces ambiguity about price, timing, and obligations, protects deposit funds, and creates enforceable remedies if a party fails to perform under 15 U.S.C. ch. 96 (ESIGN) and applicable state law.
Who regularly prepares and signs Purchase Contracts
Purchase Contracts are completed by parties to a sale and the professionals who manage closing.
- Buyers, sellers, and their agents who negotiate terms and attachments for closing.
- Title companies, escrow officers, and closing attorneys who verify title and handle funds.
- Lenders and commercial counsel who review financing, representations, and indemnities for risk control.
Use this agreement when you need a documented meeting of the minds on price, condition, timing, and closing mechanics prior to recording or transfer of ownership.
Typical signers and their responsibilities
Buyer — Individual
The buyer executes to accept price, contingencies, and funding terms. The buyer must provide accurate identity and financing information, meet deposit deadlines, and remove contingencies within stated periods to avoid forfeiting deposit.
Seller — Entity
The seller signs to convey the property or assets subject to stated representations and warranties, to provide clear title at closing, and to supply required closing documents. Entity sellers should attach corporate resolutions or authorization showing signing authority.
Core elements to include in every Purchase Contract
Property Description
Use precise legal description or asset identifiers. For real estate include street address and legal lot/parcel description as in title documents.
Contingencies
List inspection, appraisal, financing, title cure, and any regulatory approvals with explicit deadlines and procedures to remove or waive contingencies.
Closing & Possession
Define the closing date/time, location, parties delivering closing documents, deed type, and possession date including proration rules for taxes and utilities.
Representations & Warranties
Seller and buyer statements about authority, title, liens, condition, and any excluded liabilities; include survival periods.
Remedies and Deposits
Specify liquidated damages, right to specific performance, deposit forfeiture rules, and escrow disbursement triggers.
Step-by-step: completing and exchanging a Purchase Contract
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01Prepare document: Populate parties, price, property, and dates; attach exhibits.
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02Review contingencies: Set inspection, financing, and title deadlines.
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03Obtain signatures: Sign by all parties using authorized signers and required authentication.
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04Deliver to escrow: Send fully executed contract and deposit to escrow or title for closing.
How to configure an online signing workflow for the Purchase Contract
| Field | Configuration |
|---|---|
| Upload Document | Use PDF or DOCX; confirm exhibits are appended in order. |
| Add Signers | Enter full legal names, email addresses, and role (buyer/seller/escrow). |
| Set Signing Order | Choose sequential routing for lender/title sign-offs or parallel for parties. |
| Authentication | Select email link, SMS code, or KBA depending on risk requirements. |
Where to send the executed Purchase Contract
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Title / Escrow Company: Provide fully executed contract plus deposit instructions and title exceptions list.
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Buyer and Seller: Each receives an executed copy for records and lender submission.
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Lender / Underwriter: Receive contract and appraisal contingencies for loan approval processing.
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Recording Office: Deeds and mortgage instruments, not the purchase contract, are submitted for public record.
Digital signing and file-format considerations
Use secure formats and integrations that preserve audit trails and attachments.
- File formats: PDF and DOCX preserve layout and redaction control.
- Integrations: Connect to NetSuite, Salesforce, Google Workspace, or Box for records management.
- Audit trail: Ensure IP, timestamp, and action logs are retained.
Confirm the platform supports required authentication, retention, and export formats before using it for closing workflows.
Common deadlines to track in a Purchase Contract
Earnest Money Due:
State the payment window (e.g., within 3 business days of contract execution).
Inspection Period End:
Specify days for inspection and re-negotiation or termination rights.
Financing Contingency Remove:
Set the deadline to secure loan commitment or waive financing contingency.
Title Objection Deadline:
Define days for title review and cure by seller.
Closing Date:
Fix an exact date or a rolling window with possession terms.
Frequent preparation errors to avoid
- Leaving blank exhibit references that later cause disputes over included terms.
- Using informal names instead of exact legal entity names that prevent recordation or payment.
- Failing to define disbursement triggers for deposits and escrowed funds.
- Overlooking lender conditions that must be satisfied before closing funds are released.
Key legal and commercial risks of an incorrect Purchase Contract
Lost Deposit:
Forfeiture risk
Breach Claims:
Specific performance risk
Title Defect:
Recording problems
Delay Costs:
Carrying expenses
Tax Exposure:
Incorrect allocation
Funding Failure:
Sale collapse
Real-world examples of digital Purchase Contract workflows
Martin Properties — Tim Martin, Founder
The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers.
- Mobile and offline signing supported.
- I can process and execute all of these documents online with 100% compliance and built-in security, enabling timely closings without in-person meetings.
Optica Ventures LLC — Brian Fitzgibbons, COO
The interface is simple and easy-to-use for our team.
- External parties sign quickly without setup.
- The platform helps ensure executed agreements return promptly so we can move to funding and delivery without administrative delay.
Pricing and feature snapshot for common eSignature providers
| 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 | No |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |
Common questions about Purchase Contracts and electronic signing
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Can a Purchase Contract be signed electronically?
Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided intent, consent, attribution, and reliable record retention are present.
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When is notarization required?
Notarization is typically not required for the contract itself but is required for deed or transfer instruments in many states; recordation documents often need notarized acknowledgments.
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How do I correct a signed contract?
Corrections generally require mutual written agreement or an amendment signed by all original parties. Unilateral edits can invalidate the agreement or create dispute over intent.
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What if signer names do not match ID?
Name mismatches can delay closing and title issuance; ensure entity names match formation records and individuals match government IDs to avoid rejection by title or escrow.
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Are witnesses required for the Purchase Contract?
Witness requirements vary by state and document type; most purchase contracts do not need witnesses but deeds and some powers of attorney may. Check state rules before execution.
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How long should I keep the executed contract?
Retain for the agreement term plus at least three years for IRS purposes (IRC §6501(a)) and longer where industry rules apply, for example six years for HIPAA-covered records (45 CFR §164.530(j)).
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