A purchase agreement for a piece of real estate should include the date and amount of earnest money deposits, all parties involved in the transaction, the total purchase price, the address, and a complete legal description of the property and options for either party if the sale does not complete. It should also include the names of any brokers or attorneys taking part in the transaction along with the party responsible for their fees.
The earnest money is a deposit the buyer makes to secure his interest in buying the property. A neutral third party, such as an escrow company, title company or attorney, holds these fees in a trust account. Parties investing a large deposit may request that the funds be deposited in an interest bearing account and that the interest be applied to their credit in the final closing.
If a buyer offers a purchase agreement and the seller accepts it, both parties are responsible for the terms it contains. Buyers should have their attorney examine the contract before offering it to the seller, and the seller should have separate legal counsel before accepting the contract. If the contract allows the buyer and seller to have an attorney examine the contract after signing it, it is important to know what terms it allows changed after the buyer and seller sign it.