Is an electronic signature valid?

Yes, electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes when intent, consent, attribution, and reliable record retention are present.

When is notarization required?

Notarization is not usually required for preliminary purchase agreements but is required for deeds and some acknowledgements; check local recording office rules and lender requirements.

Can I correct a signed agreement?

Any change after signature requires written amendment signed by all parties. Minor clerical corrections may be supported by a signed addendum or mutual amendment.

What makes an agreement unenforceable?

Lack of essential terms, unsigned documents, ambiguous property descriptions, or missing evidence of authority can undermine enforceability under contract and statute of frauds principles.

Who should review the agreement?

Parties often consult real estate counsel, title agents, or brokers to confirm legal descriptions, contingency language, and compliance with local property disclosure rules.

How do I revoke or cancel it?

Follow termination clauses in the agreement; absent a contract remedy, parties may mutually rescind in writing. For disputes, preserve records and consult counsel promptly.

Electronic Signature
Templates
Real estate
Preliminary Real Estate Agreement

Preliminary Real Estate Agreement

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PRELIMINARY REAL ESTATE AGREEMENT

This Preliminary Real Estate Agreement (the Agreement) is made on by and between:

Buyer Name: Buyer Address:

Seller Name: Seller Address:

Property Identification

Property Street Address Parcel / APN Number Legal Description

Financial Terms

Purchase Price Earnest Money Deposit (amount) Escrow / Holder of Earnest Money

Contingencies and Due Diligence

Financing Contingency: Buyer shall have days from mutual execution to obtain loan approval. If Buyer fails to secure financing within that period, Seller may terminate this Agreement and return of earnest money shall be handled as set forth in the Escrow instructions.

Inspection Period: Buyer shall have days to complete all inspections, investigations, and approvals. Seller shall provide reasonable access for inspections.

Permitted Due Diligence and Buyer Conditions

Closing and Possession

Closing Date: Possession Date:

Title and Closing: Seller shall deliver marketable title by general warranty deed (or appropriate deed) free of liens and encumbrances except those approved by Buyer. Closing costs, prorations of taxes, assessments, rents, and utilities shall be allocated as follows:

Property Condition and Disclosures

Lead-Based Paint (if applicable): Yes No

Known Mold or Water Intrusion: Yes No

Prior Material Damage or Repairs (structural, fire, flood, termite): Yes No

Additional Seller Disclosures and Known Material Facts

Default, Remedies and Escrow Instructions

If Buyer defaults after removal of contingencies, Seller may retain earnest money as liquidated damages, seek specific performance, or pursue other remedies available at law or equity. If Seller defaults, Buyer may elect specific performance or termination with return of earnest money and recovery of actual damages. The parties agree that escrow instructions shall govern disposition of funds and shall be consistent with this Agreement.

Miscellaneous Provisions

Entire Agreement: This Agreement, together with any executed addenda and escrow instructions, constitutes the entire agreement between Buyer and Seller with respect to the sale of the Property and supersedes prior negotiations and agreements.

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

Notices (Buyer) Notices (Seller)

Acknowledgment

The parties acknowledge that this Agreement is preliminary and intended to set forth the material terms for a definitive purchase agreement to be prepared and executed at or prior to closing. Unless and until a definitive purchase agreement is executed, the parties' rights and obligations shall be limited to those expressly set forth in this Preliminary Real Estate Agreement, including the handling of earnest money and the contingencies identified herein.

Buyer:

By:

Date:

Seller:

By:

Date:

What a Preliminary Real Estate Agreement Is and When It Applies

A Preliminary Real Estate Agreement is a written contract that records the parties' initial terms for a future real estate transaction, often including property identification, price, earnest money, and key contingencies. It can function as a binding contract if it contains all essential elements and clear signature blocks, or as an interim framework that preserves negotiating points until a formal purchase agreement is executed. In U.S. practice, land-sale terms are subject to the statute of frauds and generally must be in writing and signed to be enforceable; electronic execution is permitted under ESIGN and state UETA statutes where applicable.

Why Use a Preliminary Real Estate Agreement

A clear preliminary agreement establishes expectations, documents contingencies (inspections, financing, title review), and sets deadlines so both buyer and seller understand next steps and potential liabilities under contract law.

Who Typically Prepares and Signs a Preliminary Agreement

Parties and advisors who commonly use this document include buyers, sellers, brokers, and attorneys preparing for a real estate purchase or sale.

Buyers and Sellers: Individual or entity parties who negotiate terms and agree on contingencies before final contract signature.
Real Estate Brokers: Facilitate negotiations, prepare forms consistent with local association rules, and coordinate deadlines and escrow instructions.
Attorneys and Title Agents: Review legal descriptions, advise on enforceability, prepare escrow and title contingencies, and ensure document conforms to state law.

Each signer should confirm authority to bind the party and review state-specific requirements or lender conditions before execution.

Step-by-Step: Completing a Preliminary Real Estate Agreement

Follow a consistent sequence to reduce errors: identify parties, describe the property, state consideration, set contingencies, specify deadlines, and ensure authorized signatures.

01

Identify Parties: Enter full legal names and entity types for buyer and seller.
02

Describe Property: Include complete legal description and street address.
03

List Consideration: State purchase price, earnest money amount, and payment method.
04

Set Deadlines: Specify inspection, financing, and closing dates in MM/DD/YYYY format.

Core Components to Include in a Professional Agreement

A thorough preliminary agreement balances clarity with flexibility by capturing essential deal terms while leaving detailed mechanics to the final purchase contract and closing documents.

Parties

Identify buyer(s) and seller(s) by full legal names and include entity formation details and signatory authority for corporate or trust parties.

Property Description

Provide the street address and, when possible, the full legal description from the deed or tax records to ensure the subject property is unambiguous.

Price and Payments

State the total purchase price, earnest money amount, escrow instructions, and acceptable payment methods or financing contingencies.

Contingencies

List inspection, financing, appraisal, title review, and any seller disclosures, including explicit cure periods and termination rights tied to each contingency.

Timeline

Set definitive dates for inspection completion, loan approval, closing, and deposit release to align expectations and reduce later disputes.

Signatures and Notices

Designate where signatures go, how notices must be delivered, and whether electronic delivery and signature are permitted under applicable law.

Typical Processing Flow for a Preliminary Agreement

A predictable workflow helps parties track obligations and reduces friction during negotiation and pre-closing stages.

Draft: Prepare the agreement with essential terms and contingency language.
Review: Each party reviews with agent and counsel, noting changes and questions.
Sign: Parties sign electronically or on paper; retain audit trail or originals.
Perform: Complete inspections, secure financing, and clear title per stated conditions.

How to Configure an Electronic Signing Workflow

Configure signer roles, authentication, and field placement to match your transaction flow and any lender or regulatory requirements.

Field	Configuration
Signer Order	Sequential or parallel as required by negotiation.
Authentication Method	Email link, SMS code, or stronger ID verification.
Template Fields	Predefine name, date, initial, and numeric fields for consistency.
Notifications	Automatic reminders for pending signatures and deadlines.

Technical Considerations for eSigning and Delivery

Choose a platform that supports PDF/DOCX upload, audit trails, and secure signer authentication to meet transaction and regulatory needs.

File Formats: PDF, DOCX supported for upload and signed-exit copies.
Authentication: Email, SMS, or KBA options depending on risk profile.
Integrations: Connectors for CRMs, title systems, and cloud storage.

Key Legal Risks from an Incorrect or Incomplete Agreement

Statute of Frauds: Land-sale terms must be written and signed

Missing Signature: Unsigned party may avoid enforcement

Incomplete Description: Ambiguous property boundaries risk dispute

Undisclosed Defects: Liability for known but undisclosed issues

Deposit Mishandling: Improper escrow terms can trigger forfeiture

Recording Errors: Failure to record may impact title priorities

Common Mistakes to Avoid When Drafting or Executing

Using informal property descriptions instead of the legal description, which can create ambiguity in what is being bought or sold and complicate title searches.
Leaving contingency deadlines vague or open-ended; unspecified cure or inspection periods lead to disputes over whether a party timely acted.
Failing to confirm the signatory's authority for entities or trusts, resulting in later challenges to the validity of the agreement.
Neglecting to document electronic consent when e-signatures are used; absence of intent and consent evidence can undermine enforceability.

Practical Tips for Accurate and Efficient Completion

Adopt standardized clauses and verify identity and authority to improve clarity, speed, and enforceability in most transactions.

Use Precise Legal Descriptions

Cross-check the legal description with title documents or the county assessor to avoid ambiguity. Small errors in lot or parcel numbers can derail closings and title insurance.

Document Contingency Windows

Specify exact deadlines and consequences for missed dates. Clear timelines reduce interpretation disputes and provide objective triggers for termination or extension.

Verify Signer Authority

Confirm that corporate officers, trustees, or authorized agents are empowered to sign. Obtain entity resolutions or certificates when needed to support enforceability.

Preserve Execution Records

Keep signed originals or secure digital copies with audit trails showing signer identity, timestamps, and delivery method for potential future disputes.

Typical Deadlines and Timing to Include

Clearly state each deadline and the required action so parties and escrow agents can monitor compliance and avoid inadvertent breaches.

Effective Date:

Date parties sign; triggers subsequent deadlines

Inspection Deadline:

Date by which buyer must complete inspections

Financing Contingency:

Deadline for loan approval or buyer termination

Closing Date:

Target date for deed transfer and funds exchange

Earnest Money Release:

Conditions and date funds may be refunded or forfeited

Typical eSignature Platform Pricing and Capability Snapshot

Compare base pricing and core capabilities for common eSignature providers when considering digital execution and secure recordkeeping; signNow is listed first per vendor comparison conventions.

	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	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently Asked Questions About Preliminary Agreements

Answers to common practical and legal questions about drafting, executing, and relying on Preliminary Real Estate Agreements in U.S. transactions.

Need help? Contact support

Is an electronic signature valid?
Yes, electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes when intent, consent, attribution, and reliable record retention are present.
When is notarization required?
Notarization is not usually required for preliminary purchase agreements but is required for deeds and some acknowledgements; check local recording office rules and lender requirements.
Can I correct a signed agreement?
Any change after signature requires written amendment signed by all parties. Minor clerical corrections may be supported by a signed addendum or mutual amendment.
What makes an agreement unenforceable?
Lack of essential terms, unsigned documents, ambiguous property descriptions, or missing evidence of authority can undermine enforceability under contract and statute of frauds principles.
Who should review the agreement?
Parties often consult real estate counsel, title agents, or brokers to confirm legal descriptions, contingency language, and compliance with local property disclosure rules.
How do I revoke or cancel it?
Follow termination clauses in the agreement; absent a contract remedy, parties may mutually rescind in writing. For disputes, preserve records and consult counsel promptly.

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