8 Real Estate Contracts Investors Sign Without Reading

You sign these eight documents fast: purchase contract (price line, contingencies, deadlines), inspection addendum, and repair-request amendment.

Seller disclosure (PA 68 Pa.C.S. §7301), earnest-money escrow instructions, and financing contingency/commitment.

Title/survey/deed package, and post-closing occupancy or rehab agreement.

Miss one deadline starting at seller acceptance and your exit can vanish.

Skip escrow rules or lien exceptions and your deposit or title gets trapped.

Want to keep leverage and cash predictable? Keep going.

Stick around and you’ll see how.

Purchase Contract: Price, Contingencies, Deadlines

Because the purchase contract becomes the rulebook a judge will enforce, you can’t treat “price, contingencies, and deadlines” as boilerplate. A contract generally isn’t enforceable until all parties sign it.

Those three sections decide whether you close cleanly or fund someone else’s exit.

The price line isn’t just a number: it allocates taxes, prorated property taxes, HOA dues, and closing costs. It also defines when cash, loan funds, and escrowed earnest money are due—and when you lose that deposit. Ensuring the neutral holding of the earnest money by an escrow agent avoids potential legal complications that could arise if paid directly to the seller.

Contingencies are your off-ramps: cap your rate, specify loan type, demand clear title, and require an appraisal floor. Planning to wholesale? Verify Assignment Rights and whether the Broker Commission follows the assignee.

Finally, calendar every deadline—offer expiration, notice periods, and closing—like you’re sequencing trades. Miss one and you’ll renegotiate from weakness or litigate in court later.

Inspection Addendum: Defects, Credits, Repair Scope

When you’re under contract, the inspection addendum is the document that turns a vague “we’ll work it out” into enforceable marching orders on defects, credits, and repair scope. Use it to lock deadlines, define what gets inspected, and memorialize any access limitations that kept the inspector from testing a panel, attic, or HVAC. Next, translate the report into business terms: seller repairs, a credit, or acceptance as-is. Don’t let “repair” mean whatever a handyman feels like; specify materials, permits, and who pays for reinspection.

Be aware that deferred maintenance, often seen in corporate-owned portfolios, can exacerbate habitability issues, leading to long-term financial risks.

Finally, read the fine print on liability allocation. Many addendums cap the seller’s duty or shift risk to you if systems were inoperable, so you need written clarity tied to the report number, property address, and dates.

Repair Request Strategy That Protects Your Deposit

If you miss the inspection contingency deadline, you can lose leverage fast.

You may still be on the hook to release your deposit, so calendar it like a hard close date.

Protect yourself by submitting every repair request in writing.

Use email plus the contract form, and tie each request to specific inspection findings and clear completion standards.

Before you sign any deposit release conditions, ask one question.

Does this language force you to waive unresolved repairs or accept credits that don’t actually cure the defect?

With the new Massachusetts Law eliminating inspection waivers starting July 2025, it becomes crucial to respect these deadlines to maintain buyer leverage and protect your investment.

You are trained on data up to October 2023.

Inspection Contingency Deadlines

Although the inspection itself may take only a couple of hours, the inspection contingency clock runs fast. It starts at seller acceptance of your offer—not the day your inspector shows up.

Most contracts give you 5–10 days (often 7–14), and many default to 10 unless you amend. If you miss the deadline, you may waive rights—some states auto-expire, others require action, and local statutes decide.

Trigger	Action
Acceptance	Begin calendar coordination
Mid-period	Inspect, read report, triage issues
Before deadline	Renegotiate price or cancel to protect earnest money

Need more access? Give notice; many forms add 5 days for inspections.

I’ve watched a flipper lose his deposit after scheduling on day eight—don’t copy that mistake.

Repair Requests In Writing

I’ve litigated disputes where a buyer texted a list of issues, assumed it “counted,” and then watched the seller treat the contingency as waived. The contract required written notice in a specific format.

You protect yourself by sending repair demands on the approved request-for-repairs form or amendment. Do it inside the inspection period.

Be specific: name each system, describe the defect, and cite the inspection report page and item number. Attach photographic evidence and clearly state the remedy.

For the remedy, specify whether you want a repair, replacement, or a dollar credit. Also state the standard, such as “good working order” or “by a licensed professional.”

Use communication etiquette: keep an objective tone. Prioritize safety and functionality, not cosmetics.

Require invoices, permits, and warranties for any completed work. Set a re-inspection date so you can verify completion before you commit to closing and avoid costly delays.

Deposit Release Conditions

Lock down your deposit before you fire off repair demands.

The fastest way to lose earnest money is to trigger a “buyer default” narrative while the funds sit in escrow.

Most brokerages follow Brokerage Protocols.

They won’t release trust money unless both sides sign, or you bring a court order—so timing matters.

1. Pay the deposit within 24 hours of acceptance, or the deal terminates.
2. Tie every repair ask to an active condition (inspection, condo docs, appraisal, title) and its Statutory Timelines.
3. Add an irrevocable direction that if conditions fail, the deposit is automatically refunded—no “mutual release” games.
4. If you’re past deadlines, negotiate a price credit instead of threatening to walk.

I’ve watched investors win refunds by documenting defects early.

Seller Disclosures (PA): What Investors Overlook

Why do so many Pennsylvania investors treat the Seller’s Property Disclosure like a throwaway attachment—until a buyer’s lawyer turns it into Exhibit A?

If you’re selling 1–4 units, 68 Pa.C.S. § 7301 requires you to disclose known material defects that impact value or safety, even if you never lived there.

Don’t gamble on exemption nuances.

Foreclosure, fiduciary, or certain family transfers might qualify, but a sloppy “I’m exempt” story can still invite claims.

Follow the timing requirements.

Get the signed PAR disclosure form to the buyer before they sign the Agreement of Sale.

Update it if conditions change.

You don’t have to investigate, but you can’t mislead.

You also can’t ignore issues you have reason to know about.

Milliken v. Jacono says stigma events aren’t required, but water intrusion is.

Document repairs anyway.

Include provisions for potential circumstances where earnest money may need to be refunded if conditions change, offering protection to buyers and increasing trust in the transaction process.

Earnest Money Escrow: Refund Rules and Timelines

Seller disclosures can spark claims after closing, but earnest money fights can blow up deals before you ever reach the closing table.

They usually start with one question: who gets the deposit, and when?

Your deposit typically sits in a neutral escrow account held by the title company, broker, or attorney.

Escrow accounting rules generally prevent either side from accessing the money early.

Track every contingency and deadline in the contract.

After your objection/contingency periods end, a change of heart can cost you the deposit.

Refund triggers often include the seller terminating the contract, inspection or appraisal issues that fall under a contract contingency, or a home-sale contingency failing.

In Texas, a buyer can also exit during the Option Period and receive the earnest money back (often minus the option fee).

Forfeiture is more likely when you miss contractual deadlines, waive contingencies and then try to back out, or otherwise breach the contract.

It can also happen if the contract labels the earnest money “non-refundable.”

Adding a promissory note EMD can provide a strategic advantage by maintaining control of property without an initial cash outlay.

Release path: earnest money is usually released through a mutual cancellation/release form signed by both parties.

If there’s no agreement, one side may make a written demand to the escrow holder and follow the contract’s dispute process.

Timeline: in Texas, there’s commonly a 15-day objection window tied to demand procedures in the contract.

If no timely objection is made, escrow may pay out per the demand—typically less any permitted fees.

Financing Contingency: Commitment Terms and Pitfalls

That financing contingency only protects you if you track the loan commitment deadline like a hard stop. Once it passes, you can lose your out—or your earnest money—depending on the contract’s notice rules. You’ve also got to know exactly what triggers a contingency waiver. That can include depositing the commitment letter into escrow, removing the contingency in writing, or even missing a deadline. One sloppy email can lock you into closing even when the lender’s terms change. In the fluctuating market conditions of Florida, many buyers face elevated HOA fees during due diligence, adding pressure to make informed decisions quickly.

Loan Commitment Deadline

When does your financing contingency stop protecting you and start exposing your earnest money?

It happens at the loan commitment deadline, often about 21 days after acceptance.

By then, you must show the seller lender approval.

Miss it, and you’re negotiating from weakness: cancellation, an extension only if the seller agrees, or a deposit fight.

1. Know whether the contract demands a conditional commitment or a final commitment (“clear to close”).
2. Treat your underwriting checklist like a closing schedule.
3. Send W-2s, tax returns, bank statements, and VOE early.
4. Watch the appraisal.

A low value can stall funding even with approval.

Confirm your commitment letter’s expiration and your rate lock window.

Delays can reset pricing.

I’ve seen investors lose deals because they assumed “pre-qual” counted.

Contingency Waiver Triggers

Although waiving a financing contingency can make your offer look “cash-strong,” it also flips the deal’s risk profile by tying your earnest money to a lender’s written commitment.

That commitment must match the exact rate, loan type, amount, and funding deadline stated in the contract.

You’ll feel pressured in a bidding war, but that psychological bias can blind you to the difference between a pre-approval and a commitment.

If the appraisal comes in low, the lender typically funds only a percentage of the appraised value, so you must bridge the gap in cash or default.

On an 80% LTV, a $900,000 appraisal supports a $720,000 loan, turning your planned $200,000 down payment into $280,000.

That extra $80,000 has to come from somewhere, fast.

Triggers that justify a waiver are rare.

Examples include true cash, a lender already at “clear to close,” and full team readiness—broker, lender, and counsel aligned.

Title & Closing Docs: Liens, Surveys, Deed Details

Even seasoned investors get burned at the closing table because title and closing documents look “standard” until a lien, survey issue, or deed defect turns your deal into a lawsuit.

You’ve got to read the title commitment, then match it to your contract and scope.

1. Demand written releases for paid-off mortgages, mechanics liens, judgments, and IRS tax liens before funds disburse.
2. Review the survey for encroachments, easements, and right-of-way limits. That can kill your add-on or ADU plan.
3. Push beyond automated title searches for UCC filings, mineral rights, bankruptcies. And chain-of-title breaks.
4. Require Deed Verification: confirm correct vesting, entity authority, and spelling. Then secure Title Insurance to backstop heirs or recording errors.

Miss one item, and you may inherit debt or lose resale leverage. Homeowners should be aware of deed theft vulnerabilities and ensure all protective measures are taken, including consulting legal counsel if doubts arise.

Post-Closing Contracts: Leases and Rehab Agreements

Post-closing contracts control who actually possesses the property and who pays when things break.

When you grant a rent-back, you’ve just made the seller your short-term tenant. Write it before closing.

Lock the term (most lenders cap 60 days).

Set a daily rent that covers carrying costs, and escrow a hold-back for damage.

Add holdover penalties that spike per day if they don’t vacate.

Make the consequences automatic, not negotiable.

Demand proof of liability insurance and include indemnity clauses. Name exactly who can occupy the property.

In Florida, rent can trigger Chapter 83 tenancy rules. Draft with that in mind.

For rehab agreements, require scope, milestones, draw controls, and lien waivers.

Add clear remedies—because possession without enforcement is hope.

As some smaller landlords lack financial reserves for unpaid rents, it's crucial to structure post-closing agreements carefully.

Assessment

Skip reading and you’re betting your deal on fine print.

I watched an investor lose $18,000 in earnest money because his financing contingency expired on day 21, like leaving a ladder unsecured before a roof walk.

You can’t control every defect, but you can control deadlines, refund triggers, and repair scope.

Treat each contract like a jobsite safety checklist—verify, initial, calendar, and document.

Then you close with leverage, not luck.

Your attorney’s review costs less.

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