REALWorld Law

Sale and purchase

Form of contract

Are there formal requirements regarding the content and structure of a sale and purchase contract relating to real estate (SPA)?

United States

United States

The contract must be in writing, signed by the parties, and must identify the property to be sold and the material terms of the transaction. State law will mandate any further particular requirements for the contract.

What is a typical contract or SPA in this country like?

The sale and purchase contract usually describes:

  • the purchase price
  • any deposit
  • any due diligence period
  • a mechanism for the buyer to investigate title
  • the representations and warranties given regarding the property
  • the closing date
  • the documents to be delivered at closing
  • the allocation of costs and income at closing, and
  • other matters such as the allocation of risk if the property is damaged prior to closing.