By: Melissa Dittmann Tracey
After you have an accepted purchase offer, you still have a long list of to-dos and potential deal breakers to avoid.
Buying a home is like a marriage, beginning with a proposal and leading up to a big, life-changing day. First, you have to find a home you love and make a commitment — that is, a strong real estate purchase offer, which the seller could accept, counter, or reject. Even after you have an accepted real estate purchase agreement, however, you’ll have plenty to do. The good news is your real estate agent will help you stay on track to avoid problems that could jeopardize the closing and the deal.
“Just because the contract is signed doesn’t mean the deal is done,” says April Emory, real estate professional with Emory’s Rock Realty in Wesley Chapel, Fla. “There are a few hurdles that can pop up.” Those include home inspection issues, financing obstacles, mortgage approval hurdles, or an appraisal that comes in too low.
When a real estate purchase agreement is in place, Cari McGee, managing broker at RE/MAX Northwest in Kennewick, Wash., sends buyers a long list of next steps before closing to educate them about the importance of meeting each deadline.
What Is a Real Estate Purchase Agreement?
A real estate purchase agreement, also known as a sales contract, is a written document outlining the terms and conditions of a home sale. It’s the buyer’s contract for the home purchase and is legally binding only when both parties have signed it.
Common Contingencies Included in a Home Purchase Agreement
Contingencies are like safety nets for buyers, says Emory. “They allow you to back out of the contract or renegotiate if something significant doesn’t go as expected.” She highlights the most common contingencies included in real estate purchase agreements:
- Home inspection contingency: This allows you to have a home professionally inspected and take action if the inspection report identifies any major issues, like plumbing, electrical, or foundation problems. You may ask the seller to fix them, negotiate the price, or even back out of the deal.
- Appraisal contingency: If the home appraises for less than what you agreed to pay, you can either walk away or ask for a price reduction.
- Financing contingency: You can back out if you can’t secure financing or if the terms change dramatically before closing.
- Home sale contingency: You can back out of the deal if you can’t sell your current home.
- Title contingency: This is intended to lead to a “clear title” — meaning the title company or real estate attorney found no issues with the property’s ownership. Those could include unpaid liens or disputes about who owns the property.
Contracts typically close within 30 to 60 days. In that time, you’ll need to accomplish certain things: resolving contingencies outlined in your purchase contract, meeting contractual deadlines, getting your financing ready, and making sure paperwork is in order.
“[Your agent will] help you navigate the timelines and stay on top of critical deadlines — like when to schedule inspections and meet with the lender, and when your earnest money is due,” Emory says. “If any issues come up, we’ll help you figure out a plan of action and advocate on your behalf.”
Published: June 17, 2025
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