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Key Sections of a Real Estate Purchase Contract for Rental Property Investors

Young woman shaking hands after agreeing to purchase a home.If you’re a Fort Worth rental property investor, you understand that buying a property is an important aspect of growing your portfolio. To purchase with confidence, you must thoroughly understand the real estate purchase contract. A standard real estate purchase contract is a document that specifies the terms and conditions of the sale between the buyer and seller. This blog post will go over the most important sections of a real estate purchase contract that every investor should know!

Earnest Money Deposit

The earnest money deposit typically ranges from 1% of the purchase price to 3% or 4% of the purchase price. It’s an amount you put in escrow when you submit your offer to demonstrate to the seller that you are serious about buying the property. The earnest money deposit will be applied to the purchase price when the transaction closes.

Offer to Purchase

The Offer to Purchase section starts with a detailed description of the property. This description must be carefully reviewed to include the correct property details for which you are bidding for.

It will also likely include a list of items included with the sale and items to be excluded from the sale. Careful consideration of these lists is equally vital, as the seller might omit almost anything from the transaction.

Purchase Price

The purchase price section of the real estate purchase contract is one of the most significant sections. In this part, you will agree to pay the amount specified in the agreement to acquire property ownership.

It is also crucial to include any additional fees or costs related to the sale, such as the seller paying for closing costs. This section will also detail how you want to pay for the property, whether through financing or not, and how much cash you expect to bring at settlement.

Seller Disclosures

The seller disclosures section handles any known issues with the property, whether physical or legal. This incorporates any outstanding lawsuits, such as those regarding the property, environmental concerns, or a demand for a new roof.

In general, you need to think about this data when making an offer. If the seller fails to disclose any known issues and you find them after the sale, the seller could be liable for damages.


Another vital section of a real estate purchase contract is the contingency section. This outlines all the conditions that must be met prior to conclusion, such as receiving financing, undergoing an inspection, and having a clear title.

These contingencies are usually automatically waived if the buyer does not take action. However, reviewing these contingencies is critical to understanding what to expect during the procedure and how much time you have to achieve the requirements.

Inspection Period

The inspection period is the duration after you submit the offer, during which you can cancel the purchase contract for a variety of reasons. For instance, you may notice a significant defect with the property and choose not to get it, or you may experience buyer’s regret.

The inspection period enables you to cancel the contract without penalty if you discover something that was not in your initial inspection.

Assessments and Financial Obligations

This section describes any current or future assessments and their financial obligations. If a major project is proposed for the vicinity where the property is situated, this portion will talk about the project and any associated costs.

It may also involve any outstanding fees you will be responsible for at closing, such as property taxes, HOA fees, special assessments, or utility bills. This information should be carefully reviewed to comprehend any financial obligations you could face as a result of the transaction.

Closing and Settlement

This real estate purchase contract section specifies when and where you will close the sale. This typically contains the anticipated date for property transfer. Although several buyers believe they can take possession of a property at closing, this is not always what happens. As a result, it’s critical to thoroughly review the closing section of your contract so that you can prevent any unforeseen timing issues.

Offer and Time for Acceptance

One of the most important sections of a real estate contract will often include critical dates to keep track of, such as the offer’s expiration date and time and contract deadlines. A real estate purchase agreement is only legitimate if the seller accepts your offer. The offer and time for acceptance part explains how long you have to submit your offer, how long the seller has to accept it, and when the buyer’s responsibility for providing a deposit begins. In addition, this portion may include when the contingencies start and how long you must meet these terms.


After you’ve reviewed the real estate purchase contract and have decided to submit your offer, sign the bottom to indicate acceptance or rejection. If the seller accepts your offer, the purchase agreement becomes legally binding, and you have to complete the transaction in line with the terms outlined in the contract.

However, if the seller decides to make a counteroffer, which is their answer to your initial offer, this paragraph will be incorporated into your purchase agreement. The seller’s response may include additional conditions or suggest a revised purchase price. If you take the counteroffer, you need to sign and return it to indicate acceptance.


Having a rental market expert to guide you through some of the more complicated elements of buying an investment property can be quite beneficial. Real Property Management Engage can help you with every aspect of the procedure, from the first purchase to ongoing Fort Worth property management. Contact us online or call 214-257-0101 to discover more about what we offer our investors.

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