Can a Purchase Agreement be signed electronically?

Yes. Electronic signatures are binding under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and reliable record retention are met.

When is notarization required?

Notarization is not typically required for ordinary purchase agreements, but state rules may require notarization or witnesses for deeds or transfer instruments; verify with local recording or notary rules.

What authentication should I use?

Select authentication based on transaction risk: email for low risk, SMS or KBA for medium risk, and multi-factor or advanced signer authentication for high-value or regulated transactions.

How long should I retain the agreement?

Keep executed agreements for at least 3 years post-filing for tax purposes (IRC §6501(a)); longer retention applies for HIPAA (6 years) and some state or industry rules.

What happens if a party’s name is wrong?

A mismatched legal name can impede enforcement and title transfer; correct prior to closing or execute an amendment with accurate legal names.

Can I amend after signing?

Yes. Amendments should be in writing, signed by all parties, dated, and reference the original agreement to avoid ambiguity.

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Purchase Agreement

Purchase Agreement

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

What a Purchase Agreement Is and When It Applies

A Purchase Agreement is a written contract that sets the terms and conditions for the sale of goods, services, real property, or business assets between a buyer and a seller. It records the parties, the item or property description, purchase price, payment schedule, delivery or closing conditions, and any contingencies such as inspections, financing, or regulatory approvals. The agreement creates enforceable obligations and allocates risk for title, defects, and remedies; it is commonly used in real estate closings, asset sales, and commercial equipment purchases.

Why a Clear Purchase Agreement Matters

A well-drafted Purchase Agreement reduces ambiguity about price, deliverables, timing, and remedies, protects both parties’ expectations, and makes dispute resolution simpler by documenting agreed milestones and default consequences.

Who Typically Prepares and Signs a Purchase Agreement

Common participants include individual buyers and sellers, real estate agents, brokers, title companies, lenders, corporate procurement teams, and outside counsel.

Buyers and sellers — negotiate terms, provide signatures, and meet contingency requirements.
Real estate and title professionals — manage escrow, ensure clear title, and handle closing logistics.
Legal and finance teams — review representations, tax implications, and allocation of liabilities.

Parties should confirm who will act as escrow agent or closing officer and whether signatures require witnesses, notarization, or escrow delivery to satisfy local practice.

Core Sections to Include in a Professional Purchase Agreement

A complete Purchase Agreement organizes obligations and protections into discrete sections so each party understands performance, remedy, and timing obligations.

Parties

Full legal names and entity types for buyer and seller, including contact details and representative authority.

Description

Precise description of the property, assets, or goods being transferred, including identifiers, serial numbers, and legal description where applicable.

Price & Payment

Total purchase price, deposit/earnest money, payment schedule, escrow instructions, and any financing contingencies.

Contingencies

Inspection, financing, title review, regulatory approvals, and remedy windows with clear deadlines.

Representations

Seller and buyer warranties about authority, title, condition, and compliance with laws.

Closing & Remedies

Closing mechanics, transfer of title or goods, risk of loss, liquidated damages, and dispute resolution procedures.

Step-by-Step: How to Complete a Purchase Agreement

Follow this order to assemble, review, and execute a Purchase Agreement with reduced risk of omission.

01

Gather documents: Collect IDs, title docs, invoices, inspection reports, and existing contracts.
02

Draft terms: Enter parties, price, description, contingencies, and closing mechanics.
03

Review and negotiate: Share draft with counterparties and counsel; track agreed edits.
04

Execute and distribute: Obtain signatures, deliver to escrow or title, and circulate fully executed copies.

Setting Up an Online Completion Workflow

Configure a repeatable digital workflow to reduce manual steps and ensure consistent execution for high-volume transactions.

Field Mapping	Map contract fields to your template for consistent data capture across agreements.
Signature Order	Set signer sequence (buyer, seller, escrow) to control signing flow.
Authentication	Choose email link, SMS code, or KBA based on risk and regulatory needs.
Reminders	Enable automated reminders and expiration settings for unsigned invites.
Template Library	Save finalized templates for reuse with prefilled variables and conditional clauses.

Technical Considerations for Digital Signing and Delivery

Ensure the platform supports required security, integrations, and file formats before e-signing a Purchase Agreement.

Integrations: Salesforce, NetSuite, Google Workspace integrations available.
File Formats: Accepts PDF, DOCX, and HTML imports and exports.
Authentication: Supports email link, SMS code, and advanced signer authentication.

Confirm the provider can deliver an audit trail, tamper-evident signed PDF, and any needed BAA or compliance addendum for regulated transactions.

Where the Executed Purchase Agreement Goes Next

After signing, route copies to the parties and any transactional stakeholders to complete closing, funding, and recording steps.

Buyer: Receives executed copy for records and financing.
Seller: Keeps executed agreement and prepares closing deliverables.
Escrow / Title: Receives documents to coordinate closing and disbursement.
Lender: Receives agreement to proceed with loan underwriting and funding.

Common Deadlines and Timeframes to Track

Purchase Agreements rely on clear, enforceable deadlines; specify dates or defined day counts to avoid disputes.

Earnest Money Deposit:

Typically due within 1–5 business days after contract acceptance.

Inspection Period:

Commonly 7–14 days to complete inspections and report issues.

Financing Contingency:

Buyer must secure financing by the stated contingency removal date.

Title Objection Deadline:

Set a date for raising title defects, often 7–14 days.

Closing Date:

Mutually agreed calendar date when property or assets transfer.

Key Transaction Milestones

Track these sequential milestones from agreement to closing so responsibilities and timing are clear.

01

Offer Acceptance

Mutual execution creates binding obligations subject to stated contingencies.

02

Contingency Reviews

Inspections, title searches, and financing approvals are completed and resolved.

03

Final Underwriting

Lender completes underwriting and issues final loan conditions.

04

Closing & Recording

Funds exchanged, documents signed, and deed or transfer recorded where required.

Common Preparation Errors to Avoid

Leaving contingencies vague or open-ended creates disagreement over what must be satisfied and when.
Failing to include exact legal names leads to enforceability issues and title or payment problems.
Omitting payment mechanics or escrow instructions causes delays at closing and disputes about disbursement.
Not specifying which state’s law governs can complicate remedies and venue selection in disputes.

Risks and Potential Consequences of Errors

Breach Damages: Monetary damages owed.

Specific Performance: Court-ordered completion possible.

Title Defects: May require cure or price adjustment.

Lost Deposit: Earnest money forfeiture risk.

Closing Delays: Funding and recording postponed.

Regulatory Penalties: Fines if noncompliant disclosures omitted.

Real-World Examples of Purchase Agreements in Use

These short examples show how organizations use Purchase Agreements to close deals and maintain compliance.

Optica Ventures LLC

Optica used digital templates to standardize asset sales across portfolios and speed execution.

The interface is simple and easy-to-use for our team.
"The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers." — Brian Fitzgibbons, COO, Optica Ventures LLC.

Martin Properties

A small real estate firm processed purchase agreements remotely for off-market transactions.

Mobile signing enabled rapid acceptance in competitive bids.
"I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently." — Tim Martin, Founder, Martin Properties.

eSignature Pricing and Feature Snapshot for Purchase Agreements

Compare common vendor starting prices and baseline features relevant to signing Purchase Agreements; signNow appears first per vendor ordering rules.

	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

Frequently Asked Questions About Purchase Agreements

Answers to common execution and compliance questions when preparing or signing a Purchase Agreement.

Need help? Contact support

Can a Purchase Agreement be signed electronically?
Yes. Electronic signatures are binding under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and reliable record retention are met.
When is notarization required?
Notarization is not typically required for ordinary purchase agreements, but state rules may require notarization or witnesses for deeds or transfer instruments; verify with local recording or notary rules.
What authentication should I use?
Select authentication based on transaction risk: email for low risk, SMS or KBA for medium risk, and multi-factor or advanced signer authentication for high-value or regulated transactions.
How long should I retain the agreement?
Keep executed agreements for at least 3 years post-filing for tax purposes (IRC §6501(a)); longer retention applies for HIPAA (6 years) and some state or industry rules.
What happens if a party’s name is wrong?
A mismatched legal name can impede enforcement and title transfer; correct prior to closing or execute an amendment with accurate legal names.
Can I amend after signing?
Yes. Amendments should be in writing, signed by all parties, dated, and reference the original agreement to avoid ambiguity.

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