Buying a home or investment property is exciting, and once you find the right one, it’s tempting to sign whatever paperwork lands in front of you just to keep the deal moving. But a California purchase agreement is packed with deadlines, contingencies, and legal language that can affect your finances for years to come. Before you sign a California purchase agreement, it’s worth having an experienced real estate attorney take a close look, because the clauses that seem routine are often the ones that cause the most trouble later.
At the Law Offices of Daniel A. Hunt, we’ve reviewed purchase agreements for buyers and sellers across California, and we’ve seen firsthand how a rushed signature can turn into an expensive headache. This post breaks down exactly what we check before you commit to a deal, so you know what questions to ask and what red flags to watch for.
Understanding the Purchase Price and Financing Terms
The purchase price is the number everyone focuses on, but it’s rarely the only financial detail that matters. We look closely at how the price is structured, including any seller credits, closing cost allocations, or personal property included in the sale.
Financing terms deserve just as much attention. If your purchase is contingent on securing a loan, the agreement needs to spell out your loan amount, interest rate ceiling, and the deadline for obtaining financing. Vague or missing language here can leave you exposed if your lender falls through.
We also check whether the agreement addresses what happens to your earnest money deposit if financing doesn’t come together. In California, buyers can lose their deposit if they don’t meet contingency deadlines, so this section deserves careful review before you sign a California purchase agreement.
Contingencies That Protect You (and the Ones That Don’t)
Contingencies are the safety nets built into your purchase agreement, and not all of them are created equal. A standard California purchase agreement typically includes contingencies for inspection, appraisal, and financing, but the specific wording matters more than most buyers realize.
We look at how much time you have to complete each contingency and whether that timeline is realistic. A 17-day inspection period sounds generous until you’re trying to schedule a general inspector, a roofer, and a pest control specialist all within that window.
We also review how contingencies can be removed. Some agreements require active written removal, while others use passive removal language that can strip away your protections if you miss a deadline. Understanding this distinction before you sign a California purchase agreement can save you from losing your right to walk away or renegotiate.
Disclosures and What the Seller Is (and Isn’t) Required to Tell You
California has some of the strictest seller disclosure laws in the country, and a real estate attorney checks whether the seller has actually complied with them. The Transfer Disclosure Statement, natural hazard disclosures, and any known material defects should all be part of your file before you sign.
We also look for gaps. Sometimes a seller discloses information verbally or through a separate email that never makes it into the formal disclosure package. If something was mentioned in conversation but isn’t documented, that’s a flag worth raising before closing.
It’s worth remembering that disclosure laws protect buyers, but they don’t replace the need for your own due diligence. We often recommend pairing disclosure review with an independent inspection, especially for older homes or properties with a history of renovations. Catching a disclosure gap before you sign a California purchase agreement is far easier than trying to unwind a deal after the fact.
Title Issues, Easements, and Property Boundaries
A clean title is the foundation of a solid real estate purchase, and this is one area where problems can hide in plain sight. We review the preliminary title report for liens, easements, or ownership disputes that could affect your use of the property.
Easements are particularly easy to overlook. A neighbor’s right to use part of your driveway, a utility company’s access to a portion of your yard, or a shared fence line can all show up in a title report without being obvious from a simple walkthrough.
We also check for boundary discrepancies, especially on older properties or those in rural areas where surveys may be outdated. If you’re purchasing land with any ambiguity around its boundaries, that’s something to resolve, or at least fully understand, before you sign a California purchase agreement rather than after you’ve already moved in.
Default, Remedies, and Exit Clauses
Nobody signs a purchase agreement expecting the deal to fall apart, but it’s important to know what happens if it does. We review the default provisions to understand what remedies are available to both buyer and seller if either side fails to perform.
California purchase agreements typically include liquidated damages clauses, which cap the seller’s recovery to your earnest money deposit if you back out without a valid contingency. We make sure this section is clearly written and that you understand exactly what’s at stake if circumstances change.
We also look at any exit clauses tied to specific conditions, like the sale of your current home or the results of a specialized inspection. These clauses can give you flexibility, but only if they’re drafted precisely. Loose language here is one of the most common sources of disputes we see after closing.
Get Experienced Legal Counsel
Signing a California purchase agreement is one of the biggest financial commitments most people make, and it’s not the place to skip a careful review. From financing terms and contingencies to disclosures, title issues, and default clauses, there’s a lot happening beneath the surface of a standard contract. Having a real estate attorney review your agreement before you sign gives you the chance to catch problems while you still have room to negotiate or walk away.
At the Law Offices of Daniel A. Hunt, we help buyers and sellers throughout California understand exactly what they’re agreeing to, so there are no surprises after closing. If you’re getting ready to sign a purchase agreement, contact us to schedule a consultation and let’s make sure your contract is working for you, not against you.
Frequently Asked Questions
Q: Do I need an attorney to review a California purchase agreement?
A: You’re not legally required to have an attorney review your purchase agreement, but it’s a smart move given how much money and legal risk is involved. A real estate attorney can spot problems in contingencies, financing terms, and disclosures that a standard walkthrough won’t catch. Catching these issues before you sign a California purchase agreement gives you room to negotiate or back out if needed.
Q: What happens if I miss a contingency deadline in my purchase agreement?
A: Missing a contingency deadline can mean losing your right to cancel the contract without penalty, and possibly forfeiting your earnest money deposit. California purchase agreements often use strict timelines, and some require active steps to remove contingencies rather than automatic expiration. This is exactly why reviewing your deadlines with an attorney matters before you’re locked into a deal you can’t exit.
Q: Can a seller back out of a signed purchase agreement in California?
A: Sellers can back out under limited circumstances, usually tied to specific contingencies or default provisions in the contract. If a seller cancels without a valid reason, buyers may have legal remedies, including specific performance or damages. The exact outcome depends heavily on how the agreement was drafted, which is another reason careful review matters before you sign.
Q: What should I look for in the disclosure documents before signing?
A: Check that the Transfer Disclosure Statement, natural hazard disclosures, and any known repairs or defects are fully documented and match what you were told during showings or negotiations. Look for gaps between verbal statements and written disclosures. If anything seems incomplete, it’s worth raising the issue with your agent or attorney before you sign a California purchase agreement.
Q: How long does a real estate attorney need to review a purchase agreement?
A: Most purchase agreement reviews can be completed within a day or two, depending on the complexity of the deal and how quickly title and disclosure documents are available. Given California’s contingency deadlines, it’s best to involve an attorney as early as possible, ideally before you sign anything, so there’s time to address concerns without rushing the process.
