How to Write a Contract for Sale of House

Selling a house is one of the most significant transactions in a person`s life. Writing a contract for the sale of a house requires care and attention to detail. A well-written contract can protect both the seller and the buyer and prevent future legal disputes. In this article, we`ll explain how to write a contract for the sale of a house and what things to consider.

1. Identify the Parties Involved

The first step in writing a sales contract is to identify the parties involved. The contract must include the legal names and addresses of both the buyer and the seller. If the seller is a company or corporation, the contract should include the company`s name and the names of the people authorized to sign the contract.

2. Define the Property

The second step is to define the property being sold, including the address, legal description, and any relevant details (such as the property`s size, age, condition, or features). It`s essential to include accurate and complete information to avoid any misunderstandings or disputes later.

3. Set the Purchase Price and Payment Terms

The purchase price is the most important term in the contract. The contract should specify the exact amount the buyer will pay for the property, whether it`s a fixed price or subject to negotiation. Additionally, the payment terms should be defined, including the amount of the down payment, the due date of the remaining payments, and any penalties or interest for late payments.

4. Determine any Contingencies

A contingency is a condition that must be met before the sale can close. Common contingencies include financing, inspections, or the sale of the buyer`s existing property. The contract should specify any contingencies, their deadlines, and how they will be resolved if they cannot be met.

5. Outline the Closing Process

The closing process is the final step in the sale of a house. The contract should include the date and location of the closing, the required documents, and who will pay for the closing costs. Additionally, the contract should specify what happens if either party defaults on the agreement.

6. Sign and Date the Contract

Finally, the contract should be signed and dated by both the buyer and the seller, as well as any witnesses or attorneys. Each party should keep a copy of the contract for their records.


Writing a contract for the sale of a house requires attention to detail and a thorough understanding of the legal requirements. By following these six steps, you can create a comprehensive and legally binding contract that protects both the buyer and the seller. If you`re not comfortable writing your contract, you may want to hire an attorney or a real estate professional to assist you.