Buying or selling a home is one of the most significant financial decisions most of us will ever make. Whether you're a first-time homebuyer or a seasoned investor, a real estate purchase agreement sets the terms and expectations for both parties.
It's exciting, but it can also bring stress—especially when something isn’t clear or doesn't go as planned. At Wadler Perches & Kerlick, we've seen how uncertainty in these agreements can affect families, individuals, and businesses across Fort Bend County, Wharton County, and Matagorda County.
That’s why it’s so important to get the details right from the beginning. At our firm, with offices in Wharton, Richmond, Fulshear, and Bay City, we’ve helped countless clients secure peace of mind by making sure their purchase agreements reflect their best interests.
Whether you're buying your dream home or selling property you’ve owned for years, having the right clauses in your real estate purchase agreements is crucial. Reach out to us to discuss how we can help protect your goals.
Buyer and Seller Information
Every agreement should start with the basics: clear identification of the buyer and seller. This might seem obvious, but missing or incorrect information can cause delays or make the real estate purchase agreements unenforceable.
We want to make sure the correct legal names of the individuals or entities involved are used. If one party is acting through a business, trust, or estate, it needs to be stated clearly. These small details are often overlooked but can have big consequences later on.
Property Description
This section should spell out exactly what’s being bought or sold. Vague descriptions leave too much room for disagreement.
What should be included in the property description is:
Legal description of the property: This is typically listed in the deed and can differ from the postal address.
Physical address: While not legally binding, it’s helpful to include for reference.
Inclusions and exclusions: List items that are staying with the property (like fixtures or appliances) and those that will be removed before closing.
Improvements and attached structures: Note whether sheds, decks, fences, or other features are part of the sale.
Having a thorough and accurate description avoids misunderstandings about what is (and isn’t) included in the deal. It also helps prevent future disputes that can delay or derail a sale.
Purchase Price and Financing Terms
This clause outlines what’s being paid, how, and when. Without it, there’s no deal.
Some key items to include in the purchase price and financing:
Total purchase price: Clearly state the agreed-upon price.
Earnest money deposit: This shows the buyer’s good faith and should include the amount and who holds it.
Down payment amount: Detail how much will be paid upfront.
Financing terms: Specify whether the buyer is paying in cash or obtaining a loan, and what type of loan (conventional, FHA, VA, etc.).
Loan approval deadline: This protects the seller by setting a date by which financing should be secured.
Financing issues are one of the top reasons real estate deals fall apart. Getting these terms right helps both parties feel more confident moving forward.
Closing Date and Possession
This section sets the timeline for when the property officially changes hands. Buyers and sellers often make major life plans around this date, so it's important to be clear.
Include the following in your closing and possession terms:
Closing date: The agreed-upon day for signing final documents and transferring ownership.
Possession date: This may be the same as the closing date or a different day (e.g., the day after).
Early or delayed possession terms: If either party plans to take or give possession at a different time, it must be written into the agreement.
Prorated costs: Property taxes, utilities, and other ongoing costs should be divided based on this date.
Outlining these details helps both sides coordinate moving schedules, utility changes, and financial transfers with less confusion and frustration.
Inspection and Repair Provisions
Buyers typically want to know what shape the property is in before they commit to buying it. Inspection clauses give them that opportunity, while also providing a chance to request repairs or negotiate.
Inspection clauses should cover:
Time frame for inspection: Usually seven to 10 days after the agreement is signed.
Types of inspections allowed: Home, pest, HVAC, structural, roof, etc.
Who pays for inspections: Generally, the buyer, but this should be stated.
Repair requests: Set deadlines for requesting repairs or backing out of the deal based on findings.
Seller’s repair obligations: Specify whether the seller agrees to fix certain issues or provide credits.
We’ve helped many clients use these clauses to avoid buying homes with serious, hidden problems—or to negotiate better deals based on inspection findings.
Contingency Clauses
Contingencies allow one or both parties to withdraw from the agreement if specific conditions aren’t met. They’re like safety nets, and without them, a buyer or seller could end up in a tough spot.
Important contingencies to consider include:
Financing contingency: Allows the buyer to cancel if their loan isn’t approved.
Appraisal contingency: Protects the buyer if the home is appraised for less than the purchase price.
Home sale contingency: Gives the buyer time to sell their current home before committing.
Inspection contingency: Allows termination or renegotiation based on inspection results.
Title contingency: Lets either party walk away if the title has unresolved issues.
Each of these contingencies needs clear deadlines and procedures for termination or moving forward. We’ve seen how well-written contingencies can protect both parties if things don’t go as planned.
Title and Deed Requirements
Ownership needs to be transferred cleanly and legally. This section of the agreement sets expectations for that transfer.
Title and deed clauses should address:
Type of deed: Most commonly a general warranty deed, but other options exist.
Title insurance: Who pays for it, and which company will provide it.
Title condition: States that the title must be free of liens, judgments, or legal disputes.
Cure period: A timeline for fixing any title issues that come up before closing.
We encourage our clients to have a full title search done. This helps catch surprises like unpaid property taxes or unknown heirs trying to claim ownership.
Default and Dispute Resolution
Nobody enters into a contract expecting to break it. But if one party does, this clause lays out what happens next.
Typical terms in a default and dispute clause:
Default consequences: Whether the buyer loses their earnest money or the seller owes damages.
Mediation or arbitration: Options for resolving issues without going to court.
Jurisdiction: Specifies which county or court will handle legal matters (usually where the property is located).
Attorney’s fees: States whether the losing party must pay the other side’s legal costs.
Having this in writing protects everyone. It sets expectations and makes the process more predictable if something goes wrong.
Miscellaneous Clauses That Matter
There are a few final clauses that often get overlooked but can make a big difference down the line.
Additional clauses that can help include:
Survival of terms: Specifies which parts of the real estate purchase agreements remain in effect after closing.
Merger clause: States that the written agreement overrides all prior conversations or promises.
Assignment clause: Explains whether a buyer can assign their rights to another party.
Force majeure clause: Outlines what happens if unexpected events (like natural disasters) delay or prevent the sale.
Signatures and dates: These make the real estate purchase agreements legally binding and should be double-checked for accuracy.
Even if these sections seem small, they help wrap up the agreement neatly and can prevent future headaches.
Contact a Skilled Real Estate Lawyer Today
Real estate purchase agreements are more than just forms—they're binding contracts that affect your money, your property, and your future. We’ve seen how just one missing clause can lead to costly disputes or failed deals. That’s why it’s worth sitting down with someone who knows what to look for and how to protect your interests.
At Wadler Perches & Kerlick, we’ve been working with buyers, sellers, real estate agents, and investors across Fort Bend County, Wharton County, and Matagorda County to write clear, dependable contracts.
From our offices in Wharton, Richmond, Fulshear, and Bay City, we help clients move forward with confidence—because they know their agreement was done right.
If you’re buying or selling property, don’t leave the real estate purchase agreements up to chance. Contact us today to review your real estate purchase agreement and make sure it reflects your real wants.
