The Purchase Contract, Explained
A plain-English walk-through of the Ohio Contract to Purchase.
Contract to Purchase
What's in Your Offer
When we make an offer, we fill out a Contract to Purchase. Once you and the seller both sign and it's delivered, it becomes a legally binding contract. Here's what each main section covers — I'll walk you through every line before you sign.
Price & Earnest Money
The purchase price and your earnest money deposit, plus where it's held and how many days you have to deposit it. If the contract ends, earnest money isn't released automatically — it's handled according to the contract and Ohio law.
Timelines
Time is of the essence. Deadlines are strictly enforced, and most count in calendar days starting the day after the Contract Acceptance Date (when the final signed contract is delivered).
Financing
How you're paying — cash (with proof of funds) or a loan type like conventional, FHA, VA, or USDA — and the deadlines for applying and getting loan approval.
Appraisal
If the home appraises below the purchase price, you typically have options: renegotiate, cover the difference, or end the contract — unless you've agreed to an appraisal gap.
What Stays & What Goes
Fixtures and items attached to the home — like lighting, plumbing fixtures, blinds, and landscaping — usually stay. Anything else, like appliances or a TV mount, should be listed as included or excluded.
Inspections
You can choose a full inspection, a limited one, or waive inspections. During the Inspection Period, you either send the seller a written request to fix material defects or a notice that you're satisfied. If no notice is sent in time, you're treated as satisfied. Cosmetic and routine maintenance items aren't considered material.
Insurance Verification
A set number of days to confirm you can get homeowners (and flood, if needed) insurance at a reasonable cost.
Disclosures
Whether you've received the seller's Ohio Residential Property Disclosure, and for homes built before 1978, the lead-based paint disclosure.
Home Warranty & Survey
Whether a home warranty is included and who pays for it, and whether you want a property survey.
Title & Closing
The title company that handles closing, and title insurance to protect your ownership. Title companies don't represent either side — you can hire an attorney if you'd like.
Property Taxes
Ohio property taxes are billed a year behind, so the seller typically credits you at closing for their share of taxes owed.
Possession
When you get the keys — at closing or on a specific date and time if the seller needs a little extra time to move.
Winning in Multiple Offers
The Escalation Clause
An escalation clause (or “escalator”) is an addendum to your offer that says you're willing to automatically raise your price if the seller receives a higher competing offer — by a set amount, and only up to a maximum you choose. It keeps you competitive without overpaying.
Your offer price.
How much you'll beat a competing offer by.
The most you're willing to pay, no matter what.
Example
- You offer $300,000, escalating by $2,000 over any competing offer, up to a cap of $315,000.
- The seller receives another offer at $305,000.
- Your offer automatically becomes $307,000 — still under your cap.
- If the other offer were $316,000, yours would stop at $315,000.
Why use one
- Stay competitive when several buyers want the same home
- Only pay more if there's real competition
- Set your limit ahead of time so emotions don't make the decision
Things to know
- The seller doesn't have to accept it, and some prefer a clean, “highest and best” number
- It usually requires proof of the competing offer
- It shows the seller your maximum, so we set it carefully
- The home still needs to appraise — pair it with an appraisal gap plan if needed
Appraisal gap clause
Often used alongside an escalator. It states how much of the difference you'll cover in cash if the home appraises below your price — for example, up to $10,000. Talk with your lender before using one.
Whether an escalation clause makes sense depends on the home, the competition, and your budget. We'll decide together, offer by offer.
Thinking about making an offer?
I'll explain every section, help you decide on the right terms, and keep track of every deadline once you're under contract.
This page is a plain-English overview to help you feel prepared. It isn't legal, tax, or lending advice, and the actual signed documents always control. Have questions about your situation? Ask me anytime, or talk with a real estate attorney.