Before You Sign a Purchase Contract, Check These Five Terms
A property contract commits you long before closing day.
These are the clauses that most often decide whether a deal protects you as the buyer or leaves you exposed later.
Short answer: before signing, confirm the inspection period, financing and appraisal contingencies, earnest money terms, title review rights and the remedy if either side backs out. Those five terms decide who carries the risk when something goes wrong.
The Five Terms That Carry Risk
Inspection Period
Most Arizona residential contracts give buyers a set number of days to investigate the property and cancel or request repairs. Once that window closes, walking away may cost your deposit. Put inspections on the calendar the day the contract is signed, not the day before the deadline.
Financing and Appraisal
If the loan falls through or the appraisal comes in low, the contract should say exactly what happens next. Vague language here is one of the most common reasons earnest money ends up in dispute.
Earnest Money
Know how much you are putting down, who holds it and the conditions under which it is returned. Commercial deals in particular vary widely on this point.
Title and Remedies
The title commitment lists liens, easements and restrictions that come with the property. Buyers usually have a limited time to object. An easement that seems harmless on paper can block a pool, a fence or an addition, so read it with your plans in mind.
Finally, check the remedy provisions. Some contracts limit a seller's exposure to the earnest money, while others allow a buyer to force the sale. Understanding this before signing tells you how much leverage each side really has.
The cheapest time to fix a contract problem is before your signature is on it.
| Term | Question to ask | Typical risk |
|---|---|---|
| Inspection period | How many days do I have? | Losing the deposit after it ends |
| Financing | What if the loan fails? | Dispute over earnest money |
| Title | What is recorded against it? | Easements limiting use |
| Remedies | What if someone backs out? | Weaker position than expected |
A Practical Review Routine
- Read it before you signAsk your agent for the full contract and addenda at least a day before signing.
- List every deadlinePut inspection, objection and financing dates on one shared calendar.
- Get a second lookA short attorney review costs little next to the value of the property.
Commercial Deals Need Extra Care
Commercial purchases often use custom contracts rather than standard forms, and they carry risks residential buyers rarely face: zoning limits, environmental history, existing leases and tenant estoppels. Build more time into the due diligence period, confirm that the permitted use matches your plans and make sure any seller representations survive the closing so you keep a remedy if something turns out to be untrue.
Questions Readers Ask
Agents are valuable, but they cannot give legal advice. A lawyer is worth adding for commercial deals, unusual terms or any dispute.
Yes, but only in writing signed by both sides. Verbal extensions are risky.
Arizona sellers must disclose known material defects. Failure to do so can support a claim after closing.
This article is general information for a sample website, not legal advice about any transaction.
