What Is a Real Estate Purchase Agreement? FSBO Seller’s Guide
A real estate purchase agreement is the contract that makes your home sale official. Learn what it includes, how contingencies work, and what FSBO sellers need to know when listing with Brokerless.
📑 What Is a Real Estate Purchase Agreement?
A real estate purchase agreement (sometimes called a sales contract or purchase and sale agreement) is the legally binding contract between the buyer and seller. It outlines the terms of the deal — including the purchase price, earnest money deposit, contingencies, financing terms, closing date, and what items stay with the property.
Once signed, this agreement guides the entire transaction until closing. For FSBO sellers, understanding it ensures you stay compliant and protected.
🔑 Key Elements in a Purchase Agreement
- Purchase price and financing details
- Earnest money deposit — see our guide on earnest money disputes
- Contingencies (inspection, appraisal, financing) — explained in our contingencies guide
- Disclosures required by state law — learn more about your duty to disclose defects
- Closing date and possession timeline
- Items included or excluded (appliances, fixtures, etc.)
⚖️ Why This Contract Matters for FSBO Sellers
For FSBO sellers, the purchase agreement is the roadmap to closing. Without a licensed listing agent, it’s essential you understand what’s in writing and how to handle buyer negotiations. Brokerless provides access to state-specific purchase agreements and disclosures so your sale stays compliant.
❓ FAQs About Purchase Agreements
Do I need a lawyer to review the purchase agreement?
In some states, yes. In others, your broker can provide the standard form. Always check local requirements.
Can buyers back out after signing?
Yes, if a contingency (inspection, appraisal, or financing) is not met. If not, the seller may keep the earnest money.
What if the buyer refuses to sign?
Without signatures from both parties, the deal isn’t binding. Negotiations must continue until terms are agreed.