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An earnest money deposit shows the seller that the buyer is serious about the purchase. This amount is typically held in escrow until the sale completes. The agreement should specify the deposit amount, how it will be held, and under what conditions it can be forfeited. This is critical to understand, as it can impact your financial commitment significantly.

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The agreement must specify the closing date—when the property officially changes hands. This date is critical as it also determines when the buyer can take possession of the property. Sometimes, buyers might need to negotiate temporary possession before closing, especially if the seller requires more time to vacate. Clearly outlining these terms can prevent misunderstandings down the line.

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When drafting or reviewing your purchase agreement, there are a few additional points to keep in mind:

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