Start a Utah draft worksheet
Guided questionnaire for proposed parties, price, earnest money, contingencies (user-chosen day periods), inclusions, and closing — then download an educational PDF. Not an official REPC; not UAR form language.
Start Utah draft questionnaire →Once both parties sign, the agreement typically moves a listing from active toward under contract — and becomes the roadmap for due diligence through closing.
In plain terms, the purchase agreement records what the buyer is offering to pay, what the seller is agreeing to convey, which conditions must be satisfied first, and when the transaction is expected to close. Consumer explainers from banks and major real estate platforms describe it as a legally binding contract that governs the property transfer once it is fully executed.12
In one sentence: a purchase agreement (or REPC) is the written deal — price, property, deposits, contingencies, and closing date — that both sides must follow unless they lawfully terminate under its terms.
REPC is a common abbreviation for Real Estate Purchase Contract (or sometimes Real Estate Purchase Agreement). Naming and form structure differ by market and brokerage; this guide uses the terms interchangeably for the same general idea: the executed purchase contract. It does not describe any particular state’s official form.
§ 01Key elements of a purchase agreement
Most residential purchase contracts cover a recurring set of business terms. Exact wording and required disclosures vary by jurisdiction — treat the list below as a consumer-level map, not a checklist for drafting.
Buyer and seller identities
Full legal names (and often how title will be taken) so it is clear who is bound by the contract and who will appear on closing documents.
Address, description, parcel
Street address plus a legal description or parcel/tax ID when required, so there is no ambiguity about which property is being sold.3
Purchase price & down payment
The agreed sale price, how much will be paid at closing as a down payment or cash to close, and whether financing or cash is contemplated.1
Earnest money
A good-faith deposit, typically held in escrow, that signals commitment and is usually applied toward the buyer’s costs at closing if the sale completes.4
Contingencies & deadlines
Exit or renegotiation rights tied to inspection, financing, appraisal, home-sale, title, and similar conditions — each with its own deadline.
Inclusions & exclusions
What stays with the home (appliances, fixtures, window treatments) and what the seller removes — a frequent source of closing-day disputes if left vague.
Closing date
The target date for transferring ownership, funding, and possession — subject to extensions the parties negotiate in writing.1
Disclosures & addenda
Seller property disclosures, HOA documents, lead-based paint notices, and other addenda required by law or custom in that market.
§ 02Earnest money — a common range, not a rule
Earnest money (also called a good-faith deposit) is money the buyer puts up to show serious intent. It is usually held by a neutral escrow or title party until closing or termination.
Consumer guides frequently describe earnest money as roughly 1% to 3% of the purchase price in many U.S. markets.42 That figure is a common range reported by lenders and housing platforms — not a universal legal requirement. Competitive markets may see higher deposits; quieter markets or custom deals may use a flat dollar amount. Local custom and negotiation decide the number.
Earnest money is typically credited toward the buyer’s down payment or closing costs.
If the deal falls throughWhether the deposit is returned or forfeited usually depends on the contract’s contingency language, deadlines, and which party defaulted. Do not assume either outcome without reading the signed agreement — and getting professional advice.
§ 03Common contingencies
Contingencies are conditions that must be met (or waived) for the sale to proceed. If a contingency is not satisfied by its deadline, the affected party may have a contractual right to terminate — often with earnest-money consequences spelled out in the agreement.13
Home inspection contingency
Lets the buyer hire a licensed inspector and, depending on the contract, negotiate repairs, credits, or termination if material defects appear.
Financing / mortgage contingency
Protects a buyer who cannot obtain the loan described in the contract by the stated deadline — subject to notice and documentation rules in the form.
Appraisal contingency
Addresses the risk that a lender’s appraisal comes in below the purchase price, which can affect financing and renegotiation.
Sale-of-home contingency
Ties the buyer’s performance to successfully selling their current home first. Sellers often scrutinize these closely in competitive markets.
For a longer explainer of how these work together — without sample legal language — see the contingencies page.
This site explains concepts only. It does not provide fill-in forms, state templates, or custom contingency clauses. Using informal language in a real offer can create unintended legal risk. Work with a licensed professional and the forms authorized in your jurisdiction.
§ 04From offer to closing
Most transactions follow a recognizable arc, even though timing and documents differ by market.
Draft offer
The buyer (usually through an agent) prepares a written offer on the applicable purchase-contract form, including price, deposits, contingencies, and proposed closing date.
Negotiation & counters
The seller may accept, reject, or counter. Counteroffers revise specific terms until both sides agree or talks end.
Execution
When all parties sign the final terms, the contract is executed. Listings are commonly marked under contract or pending.
Due diligence
Inspections, appraisal, loan underwriting, title review, HOA document review, and other contingency work run against the contract calendar.
Closing
Funds, deed, and keys change hands according to local closing customs. Earnest money is typically applied to the buyer’s side of the settlement statement.
§ 05Quick glossary
- Purchase agreement / REPC
- The written contract for buying and selling real property; “REPC” is a common short label for the same idea.
- Earnest money
- A good-faith deposit held in escrow, often applied to the purchase at closing if the sale completes.
- Contingency
- A contractual condition that must be met or waived by a deadline for the deal to proceed as planned.
- Escrow
- A neutral third party that holds funds or documents until contractual conditions are satisfied.
- Under contract
- Market status indicating an accepted purchase agreement is in force while parties work toward closing.
- Closing
- The settlement event where ownership transfers and remaining funds and documents are exchanged.
§ 06Important legal notice
repc.ai publishes general consumer education about real estate purchase agreements. It is not a law firm, does not create an attorney–client relationship, and does not provide legal advice.
Contract forms, disclosure duties, contingency rules, and remedies differ by state and sometimes by locality. Nothing here should be treated as an official form, a substitute for the contract your brokerage or title company uses, or advice for your specific transaction.
Before you make or accept an offer, consult a licensed real estate attorney and/or a licensed real estate agent familiar with your market.