Buying Property? Here's What to Review Before Signing Anything
A real estate transaction is one of the biggest financial decisions you'll ever make. Before you sign anything, here's what every buyer should carefully review — and why having a lawyer on your side matters.
Real Estate Law
Understanding the Purchase Agreement
Key Terms Every Buyer Should Know
The purchase agreement is the foundational legal document in any real estate transaction. Before signing, you must understand its key components: the purchase price and payment terms, the closing date, any contingencies that must be satisfied before the sale is finalized, and what happens if either party fails to meet their obligations. Seemingly minor terms — such as who pays closing costs or what personal property is included in the sale — can have significant financial implications. Never sign a purchase agreement without having it reviewed by a real estate attorney.
Contingencies and Why They Protect You
Contingencies are conditions that must be met before the purchase can be completed. Common contingencies include financing contingencies (protecting you if your mortgage falls through), inspection contingencies (allowing you to withdraw or renegotiate if significant issues are found), and appraisal contingencies (ensuring you don't overpay for a property). Removing contingencies is sometimes done to make an offer more competitive in a hot market — but doing so increases your risk significantly. Understand the implications before waiving any contingency.
Earnest Money and What Happens If the Deal Falls Apart
Earnest money is a deposit paid by the buyer to demonstrate serious intent. Typically one to three percent of the purchase price, it is held in escrow and applied toward your down payment at closing. If you back out of the deal without a valid contractual reason, you may forfeit your earnest money. If the seller backs out, you are generally entitled to a refund. The specific rules around earnest money are governed by the contract terms, making it essential to understand your rights before you commit.
Title, Inspections, and Due Diligence
Why a Title Search Matters
A title search is a review of public records to confirm that the seller has the legal right to sell the property and that there are no outstanding claims against it — such as unpaid taxes, liens, or unresolved ownership disputes. Purchasing a property with a clouded title can expose you to serious legal and financial problems. Title insurance protects you from losses arising from title defects discovered after closing. Both the lender's title insurance (usually required) and owner's title insurance (highly recommended) are worth the investment.
What a Home Inspection Should Cover
A professional home inspection is one of the most important steps in any property purchase. A thorough inspection should assess the structural integrity of the property, the condition of the roof, foundation, plumbing, electrical systems, HVAC, windows, and any signs of water damage, mold, or pest infestation. The inspection report gives you a clear picture of the property's condition and can be used to negotiate repairs or price reductions with the seller. Never skip or rush the inspection process.
Additional Due Diligence for Investment Properties
If you're purchasing a property for investment purposes, standard due diligence isn't enough. You should also review existing lease agreements and tenant histories, verify rental income and operating expenses, assess local zoning and land use regulations, and evaluate the property's compliance with building codes and safety requirements. An attorney experienced in real estate investment can help you identify hidden risks and structure the transaction in a way that protects your investment from the start.
Closing and Beyond
What to Expect at the Closing Table
Closing is the final step in the property purchase process. During closing, you will review and sign a significant number of legal documents, pay closing costs and your down payment, and officially take ownership of the property. Before closing day, request and carefully review the Closing Disclosure — a document that outlines your final loan terms, monthly payment, and all closing costs. Discrepancies between the Closing Disclosure and earlier estimates should be addressed before you sign anything.
Common Post-Closing Issues and How to Avoid Them
Even after a smooth closing, issues can arise. Sellers sometimes fail to disclose known defects, title problems can surface that were missed during the search, or boundary disputes with neighbors may emerge. Working with a real estate attorney throughout the transaction — not just at closing — significantly reduces the likelihood of post-closing surprises. If issues do arise after closing, having documented legal counsel throughout the process puts you in a much stronger position to resolve them.
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