Most real estate agents know how to fill out a purchase agreement. Fewer know how to read one — to actually interrogate each clause and understand what it means for their client if things go sideways.
That gap matters. When a deal falls apart, it almost always comes down to a clause someone didn't read carefully enough: a contingency that wasn't properly invoked, a possession date that conflicted with the closing date, a disclosure addendum that was listed but never attached.
Here's how to work through the ten most important sections of any purchase agreement — and what to look for in each one.
Parties and property identification
The opening section seems obvious but deserves real attention. Confirm that buyer and seller names match their legal IDs — not nicknames, not informal names. The property description should include the full street address and the legal parcel or APN. If the property is a condo or part of an HOA, confirm the unit number appears. Errors here can surface at title and delay closing.
Purchase price and earnest money
Check that the purchase price appears identically in both numeric and written form. If the contract uses both, a mismatch creates ambiguity — courts in most states favor the written version. Then look at earnest money: how much, when it's due, who holds it, and what happens to it if the deal falls apart. The 'held in escrow by' line matters more than most agents realize.
Financing contingency
If your buyer is financing, every field in this section needs to match their pre-approval. Loan type (conventional, FHA, VA, USDA), loan amount, interest rate cap, and down payment percentage should all be accurate. A mismatched loan type isn't just a paperwork issue — it can give the seller grounds to reject the contingency if the buyer's lender later requires different terms.
Inspection contingency
This is the most litigated section in residential real estate. You're looking for two things: whether the buyer has elected to have an inspection, and whether a timeframe is clearly specified. If the buyer is waiving inspection, confirm the waiver box is affirmatively checked — a blank field is not a waiver. If they want an inspection, confirm the number of days is filled in and that it's realistic given your local scheduling environment.
Appraisal contingency
Understand whether the contract has an appraisal gap clause and what it requires. Some contracts allow the buyer to walk if the property doesn't appraise; others require them to make up the difference up to a stated amount. Know which version your contract uses. In hot markets, sellers increasingly demand appraisal gap coverage — if your buyer agreed to cover a gap, make sure the dollar amount is written in, not just implied.
Closing date and possession
Closing date and possession date are not always the same thing. Scan for both. A seller who needs possession two days after closing needs that written into the contract as a rentback agreement — not just verbally agreed upon. Also check what happens if closing is delayed: who bears the cost, and is there a cure period before the non-breaching party can terminate?
Inclusions and exclusions
The inclusion/exclusion section is where personal property disputes are born. Check it against your MLS listing. If the seller said the refrigerator stays, it needs to be listed as an inclusion. If a chandelier is a family heirloom being removed, it should be explicitly excluded. Anything that's attached to the property and not listed as excluded is generally assumed to convey — so document exclusions in writing.
Title and deed type
Confirm that the deed type (warranty deed, quitclaim deed, etc.) is appropriate for the transaction. Most residential sales use a general or special warranty deed — if you see a quitclaim deed on a standard sale, that's a red flag worth raising with your client. Also note who is paying for title insurance and whether the buyer is getting an owner's policy. In some markets, this is negotiated; don't assume.
Required disclosures and addenda
Every state has mandatory disclosure requirements. Lead paint (for pre-1978 homes), mold, flood zone status, HOA documents, property condition — these are not optional. The disclosure section of the PA should list all addenda that are attached. Compare that list to what's actually attached. A missing addendum can expose you to liability and, in some states, can void the contract.
Default, remedies, and dispute resolution
Most agents skip this section. Don't. Understand what happens if the buyer walks without a valid contingency: is earnest money forfeited, can the seller sue for specific performance, or is there a liquidated damages cap? Know what your state's default rules are versus what this specific contract says — they're not always the same. And check whether the contract requires mediation before litigation. That clause affects how disputes play out in practice.
A note on review fatigue
The reason agents miss things in contracts isn't carelessness — it's volume. When you're reviewing your fifth contract of the week, your brain pattern-matches instead of actually reading. You see a block of text that looks like the inspection contingency, assume it's filled out correctly, and move on.
That's the value of a systematic second pass — whether it's a checklist, a colleague, or a tool that validates fields independently of your assumptions. The goal isn't to doubt yourself. It's to catch what fatigue hides.