What should I look for before signing a purchase agreement?
The short answer
A purchase agreement is the binding contract that sets the price, closing date, earnest-money amount and escrow terms, contingencies (inspection, financing, appraisal, title), default remedies, and any seller concessions. Each of those clauses carries a deadline or a condition that determines your rights if something goes wrong. Market resources from the CFPB and HUD describe the standard elements of a purchase agreement, but what your contract actually commits you to is in the document itself. Scan it to see which contingencies are included, when they expire, and what the default and deposit-release clauses say before you sign.
What Dang reviews here: Dang reviews the contractual terms of your purchase agreement — contingencies, deadlines, fees, and disclosure-related clauses. It does not verify the physical condition of the property or detect hidden defects; a professional inspection does that.
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What a purchase agreement usually covers
The purchase agreement is more than a price confirmation. It sets the earnest money amount, the escrow holder, the closing date, and the conditions under which the deal can fall apart. Contingencies — for inspection, financing, appraisal, and title — are the clauses that allow the buyer to exit with the deposit intact if a stated condition fails; each one has its own deadline and notice requirement.
The agreement also typically includes default-remedy clauses (what each side owes if they walk away), seller-disclosure acknowledgment language, and any seller concessions or items being transferred with the property. These clauses can be easy to overlook in the relief of having an offer accepted.
Why people worry
First-time buyers often sign quickly under competitive pressure and discover the implications of what they agreed to only after a problem arises — a missed inspection deadline, a contingency that was waived in the offer, or a default-remedy clause that determines what happens to the deposit if they need to back out. The agreement as signed is what controls.
What to look for in your contract
- Which contingencies are included (inspection, financing, appraisal, title) and whether any were waived.
- Each contingency's deadline and the specific written-notice requirement to invoke it.
- The earnest-money amount, escrow holder, and the conditions under which it is released to either side.
- The closing date and whether the contract includes 'time is of the essence' or an extension process.
- Default-remedy clauses — what each side owes if they fail to close.
Questions to ask before signing
- Ask your agent to walk through every contingency deadline on a calendar before you sign.
- Ask the other party to clarify any clause you do not understand, particularly around deposit release or default.
- Confirm what seller disclosures are required and when they must be delivered under your state's rules.
- Consider having the contract reviewed before signing, especially if any contingency was waived.
Why scan instead of guess
The general rule tells you the baseline. Your contract tells you what you’re actually being asked to sign — and the wording is what binds. Dang reads the document and flags the clauses worth reviewing, in plain English.
The deterministic engine scores and decides what’s risky. The AI only enriches the plain-English wording — AI extracts, code decides, never the other way around.
Your original file is deleted promptly after processing — we keep only the report you can read. No account needed for a one-time scan. Free preview first; full report $6.99, one-time.
Common questions
Is a purchase agreement the same as a sales contract?
The terms are used interchangeably in most markets — they refer to the same binding document that sets out the terms of the sale. The title at the top matters less than what the clauses inside say.
Can the other side make changes after I sign?
Generally no — a signed purchase agreement is a binding contract. Changes typically require a written addendum signed by both sides. Watch for any addenda that arrive after signing and read them carefully.
What if the contract does not include a contingency I was expecting?
A contingency that is not in the signed contract generally does not protect you, regardless of what was discussed verbally. Before signing is the time to confirm that every contingency you need is in the document.
Sources
- CFPB — Owning a Home (official homebuying resource) · official source
- HUD — Buying a Home (official homebuying resource) · official source
- Sources last checked 2026-06-11. Laws and market practices change — confirm current rules before relying on them.
No account required · File deleted after analysis · Not legal advice. Dang reports contract findings in plain English — general information, not legal advice about your situation. For consequential decisions, consult a licensed attorney in your state.