What this step involves
Real estate contracts are binding legal documents. Disclosure forms vary by state and non-disclosure can create post-closing liability. This is the step where professional review pays for itself many times over.
How to do it yourself
DIY Path
- Download your state's standard purchase and sale agreement (available from your state's real estate commission)
- Complete all required disclosure forms — your state's requirements are public record
- Hire a real estate attorney for contract review (not negotiation — just review)
- Order title insurance: owner's title policy protects you from future ownership disputes
- Choose an escrow/title company to hold funds and coordinate closing
Common pitfalls
What goes wrong
- Skipping disclosures: Non-disclosure of known defects is a liability that survives closing.
- Using generic internet contracts: State-specific forms matter. Boilerplate can be missing required provisions.
- Not understanding contingency periods: Miss a deadline and you can lose the deal or your earnest money.