Before You Sign: 7 Things to Look for in a Real Estate Contract

Real estate contracts can look simple at first glance, but the legal consequences of what’s written—and what’s missing—are anything but. Whether you’re buying, selling, or investing, signing a contract without fully understanding it can open the door to disputes, financial loss, or getting locked into obligations you can’t meet. In real estate, assumptions are expensive. The details matter. 

A real estate contract sets the terms for one of the most significant financial transactions most people will ever make. It governs everything from what exactly is being purchased to what happens if the deal falls through. Yet many people rely on standard forms or templates, filling in a few blanks and hoping everything else works itself out. That approach can work—until it doesn’t. 

Before you sign anything, you should review the entire agreement carefully, looking for key areas that commonly create issues later. While every deal is unique, there are a few elements that deserve your full attention in any contract. 

• Make sure the names and legal entities listed are correct and consistent with title records and financing documents 

• Review the legal description of the property—don’t rely solely on the street address 

• Confirm the purchase price, deposit amount, and financing terms are accurate and realistic 

• Clarify what fixtures, appliances, or improvements are included or excluded from the sale 

• Understand your inspection rights and the consequences of what’s found during inspections 

• Know what happens if one party wants to cancel, misses a deadline, or fails to close 

• Pay attention to “boilerplate” clauses—these are often overlooked but can control how disputes are resolved 

It’s not uncommon for buyers to assume that all standard contracts are safe. But “standard” doesn’t mean appropriate. Many generic forms are not tailored to your specific property type, your financing situation, or your local laws. For example, if you’re buying a property in Louisiana with unresolved succession issues, a typical out-of-state purchase agreement won’t protect you from the risk of clouded title or missing heirs. 

Another common issue arises with inspection and repair clauses. A poorly written contract may obligate a seller to make repairs, but leave out timelines, quality expectations, or procedures for re-inspection. That can lead to frustration, delays, or even a cancelled deal if the parties disagree about what was required. On the flip side, if the contract says the buyer accepts the property “as-is,” but there’s no right to cancel based on inspections, the buyer may have no recourse if serious problems are discovered. 

The fine print often includes important clauses about time extensions, dispute resolution, and legal costs. If the deal falls apart and ends up in court, these provisions can control who pays attorney’s fees, how notices must be delivered, and whether you can even bring a lawsuit. Overlooking them is easy—and costly. 

• Generic contracts rarely address your specific risks or property type 

• “As-is” language may sound simple but can strip away important protections 

• Boilerplate clauses can become critical in court, even if you never read them 

• A contract is only as strong as the clarity and enforceability of what it actually says 

Having an attorney review your contract doesn’t mean you’re expecting trouble—it means you’re planning ahead to avoid it. A skilled real estate attorney can add or revise clauses to better protect your position without scaring off the other party or making the deal harder to close. Good contract drafting isn’t about being difficult—it’s about being smart. 

Before you sign anything, know what you’re agreeing to. Don’t rely on the assumption that someone else “already took care of that.” The best time to catch a problem is before it becomes one.