Deprecated: Creation of dynamic property edit_flow::$helpers is deprecated in /var/www/html/content/plugins/edit-flow/edit_flow.php on line 139 Deprecated: Creation of dynamic property EF_Calendar::$max_weeks is deprecated in /var/www/html/content/plugins/edit-flow/modules/calendar/calendar.php on line 30 Deprecated: Creation of dynamic property EF_Calendar::$module_url is deprecated in /var/www/html/content/plugins/edit-flow/modules/calendar/calendar.php on line 32 Deprecated: Creation of dynamic property edit_flow::$calendar is deprecated in /var/www/html/content/plugins/edit-flow/edit_flow.php on line 286 Deprecated: Creation of dynamic property EF_Custom_Status::$module_url is deprecated in /var/www/html/content/plugins/edit-flow/modules/custom-status/custom-status.php on line 30 Deprecated: Creation of dynamic property edit_flow::$custom_status is deprecated in /var/www/html/content/plugins/edit-flow/edit_flow.php on line 286 Deprecated: Creation of dynamic property EF_Dashboard::$module_url is deprecated in /var/www/html/content/plugins/edit-flow/modules/dashboard/dashboard.php on line 26 Deprecated: Creation of dynamic property EF_Dashboard::$module is deprecated in /var/www/html/content/plugins/edit-flow/modules/dashboard/dashboard.php on line 44 Deprecated: Creation of dynamic property edit_flow::$dashboard is deprecated in /var/www/html/content/plugins/edit-flow/edit_flow.php on line 148 Deprecated: Creation of dynamic property EF_Editorial_Comments::$module_url is deprecated in /var/www/html/content/plugins/edit-flow/modules/editorial-comments/editorial-comments.php on line 18 Deprecated: Creation of dynamic property edit_flow::$editorial_comments is deprecated in /var/www/html/content/plugins/edit-flow/edit_flow.php on line 286 Deprecated: Creation of dynamic property EF_Editorial_Comments::$module is deprecated in /var/www/html/content/plugins/edit-flow/modules/editorial-comments/editorial-comments.php on line 44 Deprecated: Creation of dynamic property EF_Editorial_Metadata::$module_url is deprecated in /var/www/html/content/plugins/edit-flow/modules/editorial-metadata/editorial-metadata.php on line 40 Deprecated: Creation of dynamic property edit_flow::$editorial_metadata is deprecated in /var/www/html/content/plugins/edit-flow/edit_flow.php on line 286 Deprecated: Creation of dynamic property EF_Notifications::$module_url is deprecated in /var/www/html/content/plugins/edit-flow/modules/notifications/notifications.php on line 29 Deprecated: Creation of dynamic property edit_flow::$notifications is deprecated in /var/www/html/content/plugins/edit-flow/edit_flow.php on line 286 Deprecated: Creation of dynamic property EF_Settings::$module_url is deprecated in /var/www/html/content/plugins/edit-flow/modules/settings/settings.php on line 15 Deprecated: Creation of dynamic property edit_flow::$settings is deprecated in /var/www/html/content/plugins/edit-flow/edit_flow.php on line 148 Deprecated: Creation of dynamic property EF_Story_Budget::$module_url is deprecated in /var/www/html/content/plugins/edit-flow/modules/story-budget/story-budget.php on line 35 Deprecated: Creation of dynamic property edit_flow::$story_budget is deprecated in /var/www/html/content/plugins/edit-flow/edit_flow.php on line 148 Deprecated: Creation of dynamic property EF_User_Groups::$module_url is deprecated in /var/www/html/content/plugins/edit-flow/modules/user-groups/user-groups.php on line 35 Deprecated: Creation of dynamic property edit_flow::$user_groups is deprecated in /var/www/html/content/plugins/edit-flow/edit_flow.php on line 286 Deprecated: Creation of dynamic property EF_Editorial_Metadata::$module is deprecated in /var/www/html/content/plugins/edit-flow/edit_flow.php on line 317 Home Purchase Agreement - LendingTree

Back to Glossary Terms

Home Purchase Agreement

The contract outlining the agreed-upon price and terms for the purchase of a home. Also called an agreement of sale, a purchase contract, or a sale contract.

Definition

A home purchase agreement is the contract outlining the agreed-upon price and terms for the purchase of a home. Also called an agreement of sale, a purchase contract, or a sale contract.

The contract may cover home financing issues. It might specify dates by which the buyer must have applied for a mortgage, obtained pre-qualification, pre-approval, final approval and close on the purchase. Buyers who miss these dates run the risk of being “out of contract” and losing the property.

Purchase Agreement Explained

When you are buying or selling a house, you will sign a home purchase agreement that outlines the conditions that both buyer and seller agree to, including the purchase price. It is a legally binding contract between the two parties. A carefully written purchase agreement can help the sale proceed smoothly.

Most conditions in the purchase agreement are designed to protect the buyer. For example, the agreement would outline any repairs the seller is expected to make, or any items such as lighting fixtures, appliances or outdoor sheds that are to be considered part of the purchase price. It also
specifies when the buyer will take possession of the home and move in.

Additionally, the purchase agreement will outline conditions under which either party can legally back out of the deal. Financing or legal matters pertaining to an estate are two examples of conditions that can scuttle a sale if they fall through.

If a seller attempts to change or back out of the deal for reasons other than those outlined in the purchase agreement, the buyer may be able to recover damages in court.

Real estate agents and real estate attorneys both have experience in writing purchase agreements that protect your interests.