What Is the Best Real Estate Contract Template (2021)?

Written by Timothy Ware

Real estate contracts usually have the same clauses and structure. This makes real estate contract templates particularly useful. While there are exceptions to this (for example, the real estate option contracts I discuss in another post), most contracts will use the same required articles.

Note also that laws differ by state, and so you will want to use a real estate contract template that matches your local jurisdiction. For your convenience, I’ve linked to real estate contract templates customized to every state. 

One of the hardest parts about the relationship between real estate agents and their clients is sharing a common understanding of the process of buying a home. To help with this, I will also go through a simple but detailed summary of the steps of the real-estate buyer journey that you can use to guide your clients during this exciting time.

Finally, while purchase agreements tend to be very similar, they do need to be modified according to the details of each sale. I’ll go through how to do this with a sample purchase agreement template so that you are comfortable using these templates in the future.

At the end of the article, you can find a useful FAQ detailing everything you need to know about real estate contracts.


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How to buy real estate

To appreciate when and why you need real estate contract templates, you need to appreciate the entire process of buying real estate. 

In some ways, the process begins when the buyer makes an offer on a home and ends when the accepted offer is finalized and the deed transferred. However, the entire process can begin months earlier. 

Let’s go through it from the very start to appreciate just how long the buying process can take and how realtors make every step easier.


Step 1. Finding homes for sale

Traditionally, the major task of the real estate agent has been to find the homes to show their clients. However, this is shifting towards relationship management and client support during the real estate buyer journey. The rising prices of housing has made this whole process far more stressful, and a good real estate agent is an essential support during this process.

In 2007, 51% of all home sales were initially found by the buyer on the Internet. The most commonly used website are Zillow.com, Realtor.com, and Trulia.com. Directing clients to these sites is a great way to help them narrow down exactly what they are looking for in their new property. 

If you aren’t pulling these sites up in your office with your clients yet, then you are missing out on a great tool. Because realtors have their own special lingo, demystifying this for your clients by going through listings together is a great way to leverage your knowledge to build a trusting relationship with your clients.

Realtors still find 30% of homes for their customers directly. The remaining homes are initially found from friends and family, seeing a sign on a lawn, or, surprisingly, in a newspaper. Listing agents should take note of this and continue to pursue these advertising avenues. I personally see great homes for show on Facebook all the time, and they generate loads of engagement.


Step 2. Get a prequalification letter

Buyers should always consider getting prequalified for their mortgage. This is where you go to the bank and have them assess your creditworthiness. Having a prequalification letter can help your house hunting in several ways. 

Prequalification is a good signal that a buyer is serious. This will motivate a real estate agent to take extra time for the buyer as a client. In addition, it will make it easier to schedule viewings.

It will also save the buyer a lot of time looking for homes that are out of their budget. At the other end, it will keep them from looking at less desirable properties below their budget.


Step 3. Attending open houses

Buyers should make a point of seeing several different types of homes at the beginning of their search. That way they will have a good idea of what is available in their price range, what they want and need in a home, what different neighborhoods look like, and in their tastes more generally. 

After seeing several different homes, the buyer and their real estate agents should have a much better idea of what the ideal home looks like. Then, future viewings can be scheduled with the intent of seeing only homes that meet their needs.


Step 4. Scheduling a private showing

Open houses can last hours, and anyone is welcome to walk in off the street and take a look around. The listing agent acts as the host, answering any questions potential buyers have. 

Conversely, private showings are reserved for qualified buyers. They usually spend about 15 minutes touring the home with their real estate agent. This is a good opportunity to use the real estate agent’s expertise on the market to give the house an estimated value so that an offer can be submitted.


Step 5. Writing the purchase agreement  

Depending on the location, an offer sheet will either be a smaller contract or the first draft of the purchase agreement. This document outlines the price the buyer is willing to pay for the home, when they’d like to take possession of the property, and any contingencies that might be included. 

Contingencies are conditions that need to be met before the contract can be executed. Home inspection, mortgage, appraisal, and home sale contingencies are the most common types to include. I recently detailed these contingencies in an article about what it means to be under contract


Step 6. Review seller’s disclosures

Not everything in a home can be seen with the naked eye. There can be many problems hiding under (or in) the paint. That’s why there are federal, state, and local laws requiring disclosures. 

This is the point where the seller notifies the buyers about any such issues. For example, homes built before 1978 must notify the future resident about any lead paint issues (cracking, peeling, and so on).

What needs to be disclosed varies by state. In addition, buyer beware states do not make sellers liable for the information provided in some disclosures, so it is especially important for the buyer in those states to confirm all the information.


Step 7. Get the home inspected

Speaking of hidden issues, it is highly recommended that buyers always include a home inspection contingency in their offer sheet. This gives the buyer the right to hire a certified inspector to go through the home to find any potential issues. 

For example, a certified inspector will be able to give you a good idea about the condition of the foundation. They’ll also be able to tell you if there are issues with rot, mold, or termites. 

Buyers should try to find a home inspector who is willing to go through the home with them and point everything out as they inspect the property. 


Step 8. Obtain financing

If the buyer did not get prequalified for a mortgage, this can be a stressful moment. Even if the buyer did get prequalified for one, they should include a mortgage contingency. Their financial situation can change over the months of searching for a home and the bank is under no obligation to honor a prequalification letter.


Step 9. Schedule and attend the closing

This step is very involved, but the majority is done by third parties. The attorneys who are hired to close the deal will coordinate with all other parties on behalf of the buyer. 

The title company will conduct a deed search to confirm that transferring the deed to the buyer is legally feasible. The attorneys will also need to work with the bank to make sure that the funds are available and can be transferred.

When everything is ready, the attorneys will schedule the closing. This is where all documents, disclosures, and funds are transferred. After that, a new deed with the buyer’s name will be issued.


Step 10. File the deed

Once the deed is signed by the new owner, it will be filed at the county’s Registry of Deeds. Most states require a notary public to be present when the deed is signed.

If there are any land transfer taxes, they are paid when the new deed is filed. This concludes the purchasing process.


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In addition to offers and purchase agreements, there are addendums, disclosures, and so much more. That’s not even including the exclusive contract you sign with clients.

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How to write a real estate purchase agreement

Before I provide you with links to the best real estate contract templates you can find online, let’s go through how you draft a basic real estate purchase agreement. 

A purchase agreement should have the following details:

  • Buyer and seller details:

 The full names and contact details for all parties to the contract must be included.

  • Property details: 

The address of the property must be written into the contract. In addition, a legal description of the land also needs to be included.

  • Purchase price:

The total agreed upon price of the property must be added to the contract. This should include any deposit.

  • Personal property:

 If the purchase includes any added property, it needs to be listed. This includes the fridge, stove, washer, dryer, dishwasher, etc.

  • Representations and warranties: 

This is where the seller will make some claim about the condition of the home. The rules here can change from state to state (especially in “buyer beware” states), so this does not mean a buyer can skip the home inspection.

  • Financing:

 There are many different types of financing. Whatever is used must be selected and the details provided. 

  • Contingencies:

These are actions that need to be accomplished before the purchase agreement can be executed.

  • Title insurance:

 Title insurance protects the buyer from any defects or issues found in the title. In most jurisdictions, this is mandatory.

  • Closing and possession dates:

These are the dates on which the sale is finalized and the buyer takes possession of the property. These are often the same day.

  • Disclosures:

Any required or voluntary disclosures about the home are made in this section by the seller. For example, the lead-based paint disclosure is mandatory for homes built before 1978.



The best real estate contract template repository 

There are so many real estate contract templates out there that, instead of drafting another one, I’ll just send you here. eForms has every type of contract template imaginable. For example, just for purchase agreements, eForms offers the following types:

In fact, just for residential purchase agreements, you can find real estate contract templates customized to each of the 50 states and D.C. Take a look:



While there are other real estate contract types, I’m going to walk you through a generic purchase agreement template below. Once you understand how to fill in and customize this contract, you should have all the tools you need to work through the rest.

While the purchase agreement template that I’ll go through below is comprehensive, some items are rare enough to be separated into addendums. The following Purchase Agreement Addendums are  available from eForms:

There are also common disclosure documents available from eForms: 

: Federal law dictates that sellers of homes constructed prior to 1978 must state if there has been any paint chipping, peeling, etc. 

: This form is also required in every state. However, “buyer beware” states do not hold sellers liable for the contents of their disclosure.

If the contract needs to be terminated, you can also find a termination agreement here.


How to understand and fill out the best real estate contract template

I’m going to walk you through most of the purchase agreement template below. All of the images of the purchase agreement template below come from the contract provided by eForms.

However, note that some articles (Articles VIII, XI XIV, XVIII, XIX, XX, XXI XXII, XXIII, XXV, XXVI, XXVII, XIX, and XXX) do not require specific customization during the real estate contract drafting process. For this reason, I will not go over them below.

1. Initial every page

First, note that every page of the document must be initialed by both the buyer and the seller. While I put this at the top, I’d recommend doing this last or after the pages are filled out.


Source: eForms

2. Introduce the agreement, seller, buyer, and concerned property

This section sets out the basic information of the parties involved.

Source: eForms

  1. The first part specifies the effective date of the contract.
  2. The buyer (hereafter in the document named “Buyer”) fills in their full name and address, including city and state.
  3. The seller (hereafter in the document named “Seller”) fills in their full name and address, including city and state.


Source: eForms

The next article is all about the property to be sold.

  1. The box describing the type of property should be checked. If the property is different from the options available, it can be written under “Other.”
  2. The exact street address needs to be written next. This includes any unit number, the neighborhood/city/county, state, and zip code.
  3. Tax Parcel information can also be called the Parcel ID or Tax Map & Lot. This information can be found by contacting the County Recorder. 
  4. The other description line is for any other pertinent information. If there is none, it can be left blank.


The Personal Property article is where the seller can include any property, for example a fridge or stove, that is included in the sale.


3. Define the basic terms of the real estate purchase


Source: eForms

The first part of the financial particulars is the earnest money. That’s the amount that the buyer must pay to the seller to enter into the agreement. Approximately 1% to 3% of the total purchase price is considered a normal amount for earnest money. The following needs to be filled in:

  1. The amount of the earnest money
  2. The date and time that the earnest money will be transferred
  3. Whether the earnest money needs to be placed in a special escrow account in accordance with local state laws




Source: eForms

The next article is the purchase term and the financing plan. First, the purchase price is listed. Then, the financing details are selected. The three options are an All Cash Offer (the Buyer is paying with cash), Bank Financing (the Buyer is taking out a mortgage with a bank), and Seller Financing (the Seller is providing financing to the Buyer). 


4. Record any property the buyer must sell to complete this purchase


Source: eForms

If the buyer lists selling their home as a contingency, then this section needs to be filled out. The address of the property should be listed along with the number of days from the effective date that the buyer has to sell the property.