You found the perfect house in your price range, and it has almost everything you hoped to get. It is time to put your offer in writing. The written offer goes by different names in different parts of the country—offer to purchase, a contract of purchase and sale, a purchase agreement, an earnest money agreement, or a deposit receipt. Whatever the name, this contract is considered the most important document in the real estate transaction.

Once you make a written offer and it is accepted by the seller, the contract establishes the legal rights and obligations of the buyer and seller and determines the contents of the deed. Your real estate agent or lawyer will help you complete the offer, present it to the seller, negotiate its terms, and finalize the contract.
The contract must include the following terms:

• complete legal description of the property
• price you are offering
• amount of earnest money deposit
• down payment and financing details
• closing date
• move-in date
• length of time the offer is valid
• how legal ownership will transfer
• how closing costs will be apportioned
• personal property to be left, real property to be removed, and home warranties provided by the seller

Protect yourself with contingencies
Your real estate agent will tell you how to protect yourself by including contingencies in a purchase offer.

• A mortgage contingency will protect you and your earnest money until you have a mortgage commitment from a lender.



• An inspection contingency gives you time to arrange for adequate inspections and gives the seller time to complete needed repairs.



• A property-sale contingency protects you from owning two homes at once. It allows to sell your property before you are obligated to buy the new one. In a seller's market, a property-sale contingency will make your offer less attractive.