Is an electronic arras clause enforceable?

Yes. Electronic signatures generally are enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided the signature shows intent, consent, attribution, and retained reproducible records. Some exceptions (wills, certain court filings) still require paper or specific formalities.

Do I need notarization or witnesses?

Notarization and witness requirements depend on state law and the instrument's purpose. Many states require notarization for deeds and recordable instruments; some jurisdictions require witnesses for deeds or durable powers of attorney. Check the applicable state recording statutes or county recorder rules.

Can I sign remotely with eNotary/RON?

Remote online notarization is permitted in most states but rules vary. RON typically requires identity proofing, live audio-video, and retention of session recordings. Verify whether the state's notary commission authorizes RON and whether additional recording or fee requirements apply.

What happens if parties default?

Remedies follow the arras clause and general contract law: forfeiture of deposit, specific performance, or damages may apply depending on contract language and state law. Clear arras terms reduce disputes; parties often specify notice and cure periods before remedies take effect.

Is an ESIGN disclosure required?

If the transaction is consumer-facing (e.g., residential buyer financing), the ESIGN Act requires a consumer disclosure and consent to electronic records, and proof the consumer can access the electronic format (15 U.S.C. §7001(c)). Retain evidence of consent and disclosure.

How do I preserve the audit trail?

Use a platform that captures timestamps, signer attribution, IP addresses, and action history; retain a reproducible record of the signed document and metadata. Under ESIGN/UETA, retention demonstrating the signature and transaction history supports enforceability in disputes.

Electronic Signature
Templates
Real estate
Real Estate Contract with Arras

Real Estate Contract with Arras

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

REAL ESTATE CONTRACT WITH ARRAS

Date of Agreement:

Parties

Buyer Name: Phone:

Buyer Contact Address

Seller Name: Phone:

Seller Contact Address

Property Identification

Property Address Parcel / APN Number Legal Description

Purchase Terms and Arras

Purchase Price: $ Earnest Money (Arras) Amount: $

Arras Delivery: Buyer shall deliver the Arras to escrow/title agent identified below within calendar days after execution of this Contract. If buyer defaults, the parties agree the Arras shall be treated as selected below:

Credited to purchase price at closing.
Forfeited to Seller as liquidated damages, reserving Seller's right to elect specific performance instead of forfeiture.

Escrow / Title Company (holder of Arras)

Contingencies, Inspections and Financing

Financing Contingency: Yes No

If yes, Buyer shall have until to obtain written loan commitment acceptable to Buyer. If Buyer fails to obtain financing by that date, Buyer may terminate by written notice and receive return of the Arras, unless otherwise agreed in writing.

Inspection Period: Buyer shall have days from the Effective Date to complete inspections and deliver written notice of defects. Seller shall allow reasonable access for inspections. Buyer may terminate within the inspection period and recover Arras if Seller declines to remedy material defects and no agreement is reached.

Closing, Possession and Prorations

Closing Date: Possession Date:

Prorations: Real property taxes, assessments, rents, utilities and other customary prorations shall be prorated as of the Closing Date. Seller shall deliver possession free of tenants and liens except as otherwise disclosed in writing.

Title and Closing Costs

Disclosures

Lead-Based Paint (if property built prior to 1978): Yes No

Mold / Hazardous Conditions: Yes No

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

Zoning / Code Violations: Yes No

Additional Disclosure Details

Insurance, Maintenance and Risk of Loss

Risk of Loss: Risk of loss or damage to the Property prior to closing shall remain with Seller. If material damage occurs before closing, Buyer may (a) accept the property with a credit for repairs, (b) terminate and receive return of Arras, or (c) proceed to closing subject to Seller's obligation to repair as agreed in writing.

Insurance: Buyer shall obtain hazard insurance effective at or prior to closing. Seller shall maintain existing insurance until transfer of title.

Default; Remedies; Liquidated Damages

If Buyer defaults in performance after removal of contingencies, Seller may retain the Arras as liquidated damages if the parties selected forfeiture above, or seek specific performance and damages. If Seller defaults, Buyer may elect return of Arras and termination or pursue specific performance and damages.

Agreed Maximum Liquidated Damages Amount (if applicable)

Representations and Warranties

Seller represents that Seller is the lawful owner of the Property, that there are no undisclosed material liens or encumbrances, and that Seller has full authority to enter into this Contract. Buyer represents that Buyer has authority to enter and intends to complete purchase subject to the terms and contingencies herein.

Miscellaneous Provisions

Entire Agreement: This Contract, including all exhibits and addenda, constitutes the entire agreement between the parties and supersedes all prior agreements and negotiations. No amendment shall be effective unless in writing and signed by both parties.

Governing Law: This Contract shall be governed by and construed in accordance with the laws of the state selected below.

Governing State Additional Terms and Conditions

Notices

Notices shall be given in writing to the addresses set forth above or to updated addresses provided in writing. Notices are effective upon personal delivery, delivery by nationally recognized overnight courier, or three business days after deposit in the United States mail, postage prepaid.

Acknowledgment

The parties acknowledge that payment of Arras is a material inducement to Seller to remove the Property from the market pending closing; payment of Arras does not constitute transfer of title and is subject to the terms specified in this Contract. The parties also acknowledge they have had an opportunity to obtain independent legal advice.

Seller Printed Name:

By:

Date:

Buyer Printed Name:

By:

Date:

What a Real Estate Contract with Arras Is

A Real Estate Contract with Arras (often called an arras contract) is a purchase agreement used in U.S. jurisdictions to record a buyer’s deposit, outline key terms, and set conditions for closing. It combines the standard sale contract elements—parties, property description, price, contingencies—with a specified forfeiture or return of deposit clause (arras) that defines remedies if one party defaults. The document establishes timelines for inspections, financing, title review, and closing, and it often specifies governing law, notary and witness needs, and any required disclosures for the property.

Why an Arras Clause Matters in Real Estate Deals

Use a Real Estate Contract with Arras to document earnest money, allocate risk, and clarify remedies for default. Its explicit deposit terms reduce disputed expectations, support enforceability under ESIGN/UETA when signed electronically, and streamline closing by setting clear procedural milestones.

Who Typically Prepares and Signs This Contract

Common users include real estate agents, buyers, sellers, title companies, and lenders handling earnest money and closing contingencies.

Real estate brokers and agents preparing purchase agreements and deposit terms for client transactions.
Buyers submitting earnest money who need clear default remedies and contingency timelines.
Title companies and closing agents verifying deposit handling, prorations, and escrow instructions.

Use the contract to reduce disputes and document monetary commitments through closing and post-closing remedies.

Core Components of a Professional Real Estate Contract with Arras

Primary components of a Real Estate Contract with Arras ensure clarity on deposits, contingencies, timelines, remedies, title conditions, and closing mechanics.

Parties

Full legal names and roles for buyer, seller, brokers, and any third parties; include entity formation details for corporate or trust parties to avoid signature challenges.

Property

Accurate legal property description, street address, parcel number, and attachments (plats or exhibits) to prevent ambiguity in the subject property and support title searches and escrow processing.

Price & Deposit

Purchase price, allocation of the arras (earnest money) amount, payment schedule, escrow holder information, and conditions for forfeiture or return upon default or contingency failure.

Contingencies

Inspection, financing, appraisal, environmental and title clearance contingencies; include precise deadlines, cure periods, procedures for notice, and explicit termination and remedy rights to limit litigation risk.

Closing Terms

Closing date, prorations, escrow instructions, possession timing, deed type, and requirements for delivering documents and funds; identify conditions precedent for funding or recording and post-closing obligations.

Governing Law

Designate the governing state law and venue for disputes, include mediation or arbitration clauses if desired, and specify service-of-process and notice addresses for each party.

Essential Data Elements and Security Notes

Buyer Name: Enter buyer's full legal name as on ID

Seller Name: Enter seller's full legal name on title

Property Description: Include legal description and street address

Deposit Amount: State exact dollar amount and payment method

Effective Date: Use MM/DD/YYYY format for clarity

Escrow Holder: Name, contact, and escrow account details

Step-by-Step: How to Complete the Contract

Follow these steps to complete and execute a Real Estate Contract with Arras accurately and in enforceable form.

01

Prepare Document: Collect IDs, property details, and deposit instructions.
02

Insert Arras Terms: Specify deposit amount, forfeiture, and return conditions.
03

Review Contingencies: Set inspection, financing, and title deadlines.
04

Sign and Deliver: Execute signatures, notarize if required, and distribute copies.

Configure an Online Signing Workflow

Configure digital workflow fields, signer order, and authentication before sending for electronic signature to ensure compliance.

Field	Configuration
Signing Order	Sequential or parallel signer workflow
Authentication	Email link, SMS code, or KBA
Required Fields	Make initials and signature fields mandatory
Notifications	Auto-notify signers and send reminders

Typical Routing from Preparation to Recording

Typical routing for a Real Estate Contract with Arras from preparation to final recording and distribution.

Upload Document: Start with final draft in PDF or DOCX
Set Fields: Place signature, initial, date, and amount fields
Add Signers: Assign roles and email addresses in order
Send for Signature: Signer receives link, authenticates, and signs

Technical Requirements for eSigning and Submission

Electronic signing requires compatible document formats, signer authentication, and secure transmission protocols and audit trails.

Formats Supported: PDF, DOCX, HTML supported natively
Authentication Options: Email, SMS code, or KBA
Security Standards: TLS in transit; AES-256 at rest

Penalties and Risks of an Incorrect Contract

Deposit Forfeiture: Buyer loses earnest money

Contract Voidance: Material defects may void deal

Recording Delay: Delayed transfer of title

Tax Penalties: Backup withholding 24% possible

I-9 / Employment: Errors lead to fines

Legal Costs: Litigation or enforcement expenses

Common Preparation Mistakes to Avoid

Using vague arras language that fails to state whether deposit is forfeitable or refundable, creating disputes and litigation risk.
Mismatching party names or signatory authority, such as trade names versus legal entity names, which can invalidate signatures during title or financing review.
Omitting precise contingency deadlines or cure periods, leaving open-ended obligations that permit rescission or unresolvable default disputes.
Failing to notarize or obtain required witness attestations where state law or deed recording rules mandate them, resulting in rejection at recorder’s office.

Key Dates to Specify in the Agreement

Key dates in a Real Estate Contract with Arras must be explicit to enforce contingencies and protect deposit rights.

Deposit Due Date:

State exact date funds must be delivered to escrow

Inspection Deadline:

Number of days for inspections and repair requests

Financing Contingency:

Deadline to secure loan approval or terminate

Closing Date:

Date for transfer of title, funds, and possession

Recording Deadline:

Timeframe to record deed after closing

Real-World Outcomes from Arras Clauses

Real-world examples show how arras provisions affect deposit disputes, lender conditions, and recording outcomes in both residential and commercial closings.

Residential Purchase

A buyer included arras specifying a $10,000 earnest deposit with explicit forfeiture on failure to close due to financing.

Seller successfully enforced the forfeiture clause.
Title company confirmed contract terms and escrow disbursed per arras clause after court review; clear deposit terms avoided prolonged litigation and clarified recovery for seller costs and reimbursed administrative fees and inspection costs.

Commercial Sale

A commercial buyer set arras tied to milestone completions and escrow releases to align with tenant improvements and lender draw schedules.

Escrow funds were released in phases.
Lender conditions were satisfied at staged intervals; clear arras language reduced funding disputes and ensured construction draws matched recorded agreements, simplifying closing and recording steps and minimized delay penalties under the contract.

eSignature Pricing and Feature Comparison for This Document

Compare eSignature vendor pricing and key features relevant to executing a Real Estate Contract with Arras, including starting price and compliance capabilities.

	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 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
Envelope Cap	No envelope cap	100 envelopes/user/year	Depends on plan	Depends on plan	Depends on plan

Frequently Asked Questions About Real Estate Contracts with Arras

Answers to common questions about executing, signing, and enforcing a Real Estate Contract with Arras, including electronic signature and notarization concerns.

Need help? Contact support

Is an electronic arras clause enforceable?
Yes. Electronic signatures generally are enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided the signature shows intent, consent, attribution, and retained reproducible records. Some exceptions (wills, certain court filings) still require paper or specific formalities.
Do I need notarization or witnesses?
Notarization and witness requirements depend on state law and the instrument's purpose. Many states require notarization for deeds and recordable instruments; some jurisdictions require witnesses for deeds or durable powers of attorney. Check the applicable state recording statutes or county recorder rules.
Can I sign remotely with eNotary/RON?
Remote online notarization is permitted in most states but rules vary. RON typically requires identity proofing, live audio-video, and retention of session recordings. Verify whether the state's notary commission authorizes RON and whether additional recording or fee requirements apply.
What happens if parties default?
Remedies follow the arras clause and general contract law: forfeiture of deposit, specific performance, or damages may apply depending on contract language and state law. Clear arras terms reduce disputes; parties often specify notice and cure periods before remedies take effect.
Is an ESIGN disclosure required?
If the transaction is consumer-facing (e.g., residential buyer financing), the ESIGN Act requires a consumer disclosure and consent to electronic records, and proof the consumer can access the electronic format (15 U.S.C. §7001(c)). Retain evidence of consent and disclosure.
How do I preserve the audit trail?
Use a platform that captures timestamps, signer attribution, IP addresses, and action history; retain a reproducible record of the signed document and metadata. Under ESIGN/UETA, retention demonstrating the signature and transaction history supports enforceability in disputes.

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