Whether it consists of several pages of big type or a few of fine print, the purchase agreement is a legal document. In most areas, there are "boiler plate" forms that spell out what each party agrees to do by certain dates and what happens if either side breaks the contract.

The best time to become familiar with the contract is early on in the home buying process. Ask your agent for a copy of the purchase agreement and then review it, keeping in mind that it has the force of law. If you do not understand the document, seek the advice of an attorney. If there is a dispute between buyer and seller, a court will hold you to what the purchase agreement says, not what you thought it meant or what you thought the REALTOR® said it meant. There are several important points you need to be clear about. What are the deadlines for loan application and obtaining financing? Can you back out of the contract after the home inspection report? Are appliances included with the sale of the house? When will the closing take place? If you comprehend the agreement and its clauses, you will minimize the likelihood of misunderstandings and avoid a lot of stress.