After both sides agree on the offer amount, you and your agent draw up a purchase and sale agreement, which you'll sign, stating the final sale price and all terms of the purchase. Specific agreement items vary by state but usually include:

  • The final purchase price agreed on
  • The down payment (includes earnest money/your deposit)
  • Closing date (when the sale becomes final and you can move in)
  • Title insurance protecting you against problems or fraud with the property title
  • Title guarantee giving you a clear title to the home
  • Expense provision keeping the seller responsible for taxes, utility charges, and similar costs through the closing date
  • Contingencies or clauses that must be met or fulfilled before the closing, including inspection, financing, title, appraisal and current home sale