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Purchase Home Agreement

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OPTION AGREEMENT FOR THE SALE AND PURCHASE OF REAL ESTATE
RESIDENTIAL HOME

WARNING: THIS CONTRACT HAS SUBSTANTIAL LEGAL CONSEQUENCES AND THE PARTIES ARE ADVISED TO CONSULT LEGAL AND TAX COUNSEL.

This Option Agreement is made on this the day of , 20, by and between , hereinafter referred to as the “SELLER”, whether one or more, and , hereinafter referred to as the “PURCHASER”, whether one or more.

FOR AND IN CONSIDERATION of $10.00 and other good and valuable considerations, the receipt and sufficiency of which is hereby acknowledged, it is agreed as follows:

1. GRANT OF OPTION: The Seller does hereby grant unto the Purchaser the exclusive and irrevocable option to purchase, upon the terms and conditions hereinafter set forth, Seller's property situated in County, , with an address of , together with the following items, if any:

(Strike items to be retained by Seller) curtains and rods, draperies and rods, valances, blinds, window shades, screens, shutters, awnings, wall-to-wall carpeting, mirrors fixed in place, ceiling fans, attic fans, mail boxes, television antennas and satellite dish system with controls and equipment, permanently installed heating and air-conditioning units, window air-conditioning units, built-in security and fire detection equipment, plumbing and lighting fixtures including chandeliers, water softener, stove, built-in kitchen equipment, garage door openers with controls, built-in cleaning equipment, all swimming pool equipment and maintenance accessories, shrubbery, landscaping, permanently installed outdoor cooking equipment, built-in fireplace screens, artificial fireplace logs and all other property owned by Seller and attached to the above described real property except the following property which is not included (list items not included):

SEE ATTACHED EXHIBIT "A" FOR LEGAL DESCRIPTION

2. EXERCISE OF OPTION: This option to purchase may be exercised by the Purchaser at any time prior to midnight on , 20 by notice in writing to the Seller addressed to the following address:

All notices will be deemed delivered to Seller upon deposit in the U.S. Mail Certified, Return Receipt Requested, addressed to the above address.

3. DEFAULT BY PURCHASER: In the event of the failure of the Purchaser to exercise this option, or in the event of any default by the Purchaser after the exercise of this option, all money paid by the Purchaser to the Seller upon the execution of this Agreement, or upon any extension, shall be retained by the Seller as consideration for the granting of this Option to the Purchaser, and all rights of the Purchaser under this Agreement shall terminate.

4. TITLE: Within fifteen (15) days after the Purchaser has exercised this Option as hereinabove provided, the Seller shall deliver to the Purchaser, or to Purchaser's attorney, a Certificate of Title, title report or title abstract by a reputable attorney, title company or abstract company, upon which title report insurance can be obtained, covering the property described in paragraph I above which shall reflect that marketable fee simple title to the subject property is vested in Seller and that same is insurable by a title company of Purchasers choice.

5. PURCHASE PRICE: The purchase price for the property shall be ($).

6. OPTION MONEY: Upon execution of this Option, Purchaser has paid unto Seller the sum of ($) as "Option Money".

7. EXTENSION: Purchaser shall be entitled to extend the time within which this Option may be exercised to midnight , 20, by paying unto Seller in cash an additional sum of $ prior to the expiration of the initial option period and by giving notice in writing to Seller of Purchaser's election to extend the option.

8. RIGHT OF ENTRY: During the term of this Option or any extension hereof, Purchaser shall be entitled to enter upon the property for the purpose of conducting soil tests, engineering studies, surveys and any other desired inspections of the property.

9. FINANCING: In the event this option is exercised, the following provisions apply with respect to financing:

CASH SALE: This contract is not contingent on financing. Purchaser shall pay all cash at closing.

OWNER FINANCING: Seller agrees to finance dollars of the purchase price pursuant to a promissory note from Purchaser to Seller of $, bearing % interest per annum, payable over a term of years with even monthly payments, secured by a deed of trust or mortgage lien with the first payment to begin on the day of , 20.

NEW LOAN OR ASSUMPTION: Closing is contingent on Purchaser obtaining financing. Within days after the effective date of this contract Purchaser shall apply for all financing or noteholder's approval of any assumption and make every reasonable effort to obtain financing or assumption approval. If financing or assumption approval is not obtained within days after the effective date hereof, this contract will terminate and the earnest money will be refunded to Purchaser.

10. EXPENSES OF SALE: In the event that Purchaser exercises this option to purchase the subject property, the following closing costs shall be paid as provided.

Closing Costs Purchaser Seller Both*
Attorney Fees
Title Insurance
Title Abstract or Certificate
Property Insurance
Recording Fees
Appraisal
Survey
All other closing costs

* 50/50 between Purchaser and seller.

If Purchaser intends to obtain a new loan, the loan will be of the following type:

Conventional VA FHA Other:

11. PROPERTY CONDITION:

SELLER’S DISCLOSURE OF LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS is required by Federal law for a residential dwelling constructed prior to 1978. An addendum providing such disclosure is attached is not applicable.

Purchaser hereby represents that he has personally inspected and examined the above mentioned premises and all improvements thereon. Purchaser hereby acknowledges that unless otherwise set forth in writing elsewhere in this contract neither nor Seller nor Seller's representatives, if any, have made any representations concerning the present or past structural condition of the improvements. Purchaser accepts the property in it's "as-is" and present condition.

MECHANICAL EQUIPMENT AND BUILT IN APPLIANCES: All such equipment is sold as is without warranty, or shall be in good working order on the date of closing. Any repairs needed to mechanical equipment or appliances, if any, shall be the responsibility of Seller Purchaser.

UTILITIES: Water is provided to the property by , Sewer is provided by . Gas is provided by . Electricity is provided by .

Other:

The present condition of all utilities is accepted by Purchaser.

12. APPRAISAL, SURVEY AND TERMITE INSPECTION: Any appraisal of the property shall be the responsibility of Purchaser Seller. A survey is not required required, the cost of which shall be paid by Seller Purchaser. A termite inspection is not required required, the cost of which shall be paid by Seller Purchaser.

13. POSSESSION AND TITLE: Seller shall deliver possession of the Property to Purchaser at closing. Title shall be conveyed to Purchaser, if more than one as Joint tenants with rights of survivorship, tenants in common, Other: .

14. PRORATIONS: Taxes for the current year, interest, maintenance fees, assessments, dues and rents, if any, will be prorated through the Closing Date.

15. CASUALTY LOSS: If any part of the Property is damaged or destroyed by fire or other casualty loss after the effective date of the contract, Seller shall restore the Property to its previous condition as soon as reasonably possible.

16. DEFAULT: If Purchaser fails to comply with this contract, Purchaser will be in default, and Seller may either enforce specific performance or terminate this contract and receive the earnest money as liquidated damages.

17. POSSESSION: Purchaser shall be entitled to possession of the property at closing.

18. TAXES: Taxes shall be prorated as of the date of closing.

19. DEFAULT: This contract shall be binding upon and inure to the benefit of the heirs, administrators and assigns of the parties hereto and upon default in any of the terms of this Agreement the defaulting party agrees to pay all costs of Court and a reasonable attorney's fee.

20. ATTORNEY'S FEES: The prevailing party in any legal proceeding brought under or with respect to the transaction described in this contract is entitled to recover reasonable attorney’s fees.

21. REPRESENTATIONS: Seller represents that as of the Closing Date there will be no liens, assessments, or security interests against the Property which will not be satisfied out of the sales proceeds unless securing payment of any loans assumed by Purchaser.

22. AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed except by their written agreement.

23. NOTICES: All notices from one party to the other must be in writing and are effective when mailed to, hand-delivered at, or transmitted by facsimile machine as follows:

To Purchaser at:

Telephone

Facsimile

To Seller at:

Telephone

Facsimile

24. ASSIGNMENT: This agreement may may not be assigned by Purchaser without the consent of Seller.

25. PRIOR AGREEMENTS: This contract incorporates all prior agreements between the parties and contains the entire and final agreement of the parties.

26. NO BROKER OR AGENTS: The parties represent that neither party has employed the services of a real estate broker or agent in connection with the property.

27. EMINENT DOMAIN: If the property is condemned by eminent domain after the effective date hereof, the Seller and Purchaser shall agree to continue the closing, or cancel this Contract.

28. RECORDING: This agreement may may not be recorded in the official records of County, .

29. OTHER PROVISIONS

30. GOVERNING LAW: This contract shall be governed by the laws of the State of .

IN WITNESS WHEREOF, the parties have executed this Agreement on this the day of , 20.

Seller

Seller

Purchaser

Purchaser

STATE OF

COUNTY OF

PERSONALLY appeared before me, the undersigned authority, the within named, , who acknowledged, signed, executed and delivered the above and foregoing agreement.

DATED this the day of , 20.

______________________________________

NOTARY PUBLIC

My Commission Expires:

STATE OF

COUNTY OF

PERSONALLY appeared before me, the undersigned authority, the within named, , who acknowledged, signed, executed and delivered the above and foregoing agreement.

DATED this the day of , 20.

______________________________________

NOTARY PUBLIC

My Commission Expires:

EXHIBIT “A”

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What a Purchase Home Agreement Does

A Purchase Home Agreement is a legally binding contract that sets the terms for transferring real property from seller to buyer. It identifies the parties, describes the property, states the purchase price and payment terms, and records contingencies such as inspections, financing, or title conditions. The agreement also allocates responsibilities for closing costs, prorations, and required disclosures, and typically specifies the closing date and recording instructions. Properly executed, it creates enforceable obligations and a roadmap to closing for all parties involved.

Why a Clear Purchase Home Agreement Matters

A well-drafted Purchase Home Agreement reduces dispute risk by documenting price, conditions, timelines, and remedies. It preserves financing and title contingencies, clarifies allocation of costs, and creates enforceable obligations that support closing and post-closing recordation.

Why a Clear Purchase Home Agreement Matters

Who Typically Prepares and Signs This Agreement

Real estate brokers, buyers, sellers, and closing agents commonly prepare or use Purchase Home Agreements to document transaction terms.

  • Buyers and their agents who need to secure property rights and financing under clear terms.
  • Sellers and listing agents who must disclose condition, price, and closing obligations to prospective buyers.
  • Title companies, lenders, and closing attorneys that review terms and prepare closing and recording documents.

Each participant has distinct responsibilities during negotiation and closing; the agreement assigns those responsibilities and creates the enforceable framework for transfer.

Core Elements of a Professional Purchase Home Agreement

A complete agreement combines identity, property description, price, deposits, contingencies, and closing mechanics into a single document that supports clear performance and recordation.

Parties

Full legal names for buyer and seller, including entity details when applicable, to ensure enforceability and title transfer accuracy.

Property Description

Complete legal description or parcel ID with street address; avoid informal descriptions to prevent title or recording issues.

Purchase Price

Dollar amount plus payment structure, including financing terms, seller credits, and any escrow disbursement instructions.

Earnest Money

Deposit amount, delivery deadline, escrow holder, and conditions for forfeiture or refund tied to contingencies.

Contingencies

Inspection, financing, appraisal, and title conditions with explicit cure periods and termination rights if unmet.

Closing Terms

Scheduled closing date, prorations, who pays closing costs, recording instructions, and possession timing.

Essential Data Fields to Include

Buyer Name: Legal entity
Seller Name: Legal entity
Property: Legal description
Purchase Price: Exact dollar amount
Earnest Deposit: Amount and deadline
Closing Date: MM/DD/YYYY

Step-by-Step: Completing a Purchase Home Agreement

Follow these sequential steps to prepare, execute, and move a transaction to closing.

  • 01
    Draft Terms: Assemble parties, price, contingencies, and dates in a single draft.
  • 02
    Review and Negotiate: Each party reviews inspections, financing, and title exceptions.
  • 03
    Execute Agreement: Collect dated signatures and initials where required.
  • 04
    Close and Record: Complete funding, sign closing documents, and record deed.

Configuring an Online Signing Workflow

Set up a consistent digital workflow to collect signatures, authenticate signers, and store executed documents securely.

Field Setting
Document Type Purchase agreement template
Authentication Email plus optional SMS code
Routing Order Buyer then seller then closing agent
Storage Secure encrypted repository

Where to Send the Executed Agreement

After execution, distribute the agreement to parties and service providers required for closing and recording.

  • Title Company: Receives agreement to clear title and prepare closing documents.
  • Lender: Requires executed agreement to process mortgage commitment and funding.
  • Escrow Agent: Holds earnest money and coordinates disbursements at closing.
  • County Recorder: Records deed and other instruments after closing and payment.

Digital Signing and File Format Requirements

Choose a platform that supports secure eSignatures, audit trails, and the file formats used by title and lender partners.

  • File Formats: PDF and DOCX are commonly accepted.
  • Integrations: Salesforce, NetSuite, Microsoft 365 supported by major providers.
  • Encryption Standards: TLS 1.2/1.3 in transit; AES-256 at rest.

Ensure chosen tools include detailed audit trails and the ability to export signed PDFs that title companies and recorders accept.

Key Deadlines and Timing Expectations

Track contingency and closing deadlines closely; missed dates can trigger termination or loss of deposit.

Earnest Money Deadline:

Deliver funds by the date stated in agreement.

Inspection Period:

Buyer must complete inspections and notify seller within the stated days.

Financing Contingency Deadline:

Buyer must secure commitment by this date or waive contingency.

Appraisal Deadline:

Lender appraisal must be ordered and completed before closing.

Closing Date:

Date when funds transfer and deed recording occur.

Authentication, Notarization, and Recording Steps

Notarization and witness steps vary; follow the required sequence to ensure recordability and acceptance by title and county offices.

01

Signatures Collected

All parties sign and date the agreement or deed as required.

02

Notary Acknowledgement

Notary confirms identity and executes acknowledgment or jurat.

03

Remote Notarization

Use RON only where the state permits and requirements are met.

04

Notary Journal

Notary entries should be retained per state rules.

05

Witness Attestation

Where two witnesses are required, obtain sworn witness signatures.

06

Prepare Recording

Title company verifies deed format for county recorder submission.

07

Record Deed

County records the deed; recording generates public record.

08

Final Distribution

Provide recorded copies to buyer, seller, and lender.

Common Preparation Mistakes to Avoid

  • Using an informal or incomplete property description that does not match public records leads to title and recording rejections and closing delays.
  • Entering mismatched party names or omitting entity suffixes causes lender and title complications and may require corrective deeds.
  • Failing to set explicit contingency dates or cure periods results in disputed rights to terminate or retain deposits.
  • Missing deadlines for earnest money or financing notice often triggers default remedies or contract termination for cause.

Potential Legal and Financial Consequences

Faulty Disclosure: Civil liability
Title Defect: Delayed or invalid transfer
Missed Deadlines: Loss of deposit
Financing Failure: Contract termination
Incorrect Description: Recording rejection
Improper Signature: Enforceability risk

Representative Use Cases and Customer Experiences

Real-world examples show how clearly structured agreements and digital workflows reduce friction and support timely closings.

Martin Properties — Tim Martin

Tim Martin used an online signing workflow to manage multiple residential closings with remote buyers.

  • The system centralized signatures and audit trails.
  • As a result, his small brokerage processed transactions with consistent recordkeeping and fewer scheduling conflicts during closings.

Optica Ventures — Brian Fitzgibbons

Optica Ventures standardized its purchase agreements and templates for investment properties.

  • Templates included contingency checklists.
  • This reduced review cycles and helped ensure consistent deliverables for title review and lender underwriting across transactions.

eSignature Vendor Pricing and Feature Comparison

A concise comparison of starting prices and core features for common eSignature providers; signNow is listed first per platform data and plan structure.

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 Yes, 7-day trial No No Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions and Troubleshooting

Answers to common legal, procedural, and technical questions when preparing or executing a Purchase Home Agreement.


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