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Contracts create binding legal obligations. Reviewing documents thoroughly before signing prevents costly mistakes, unexpected obligations, and disputes. Taking time to read and understand contracts is essential, even when other parties pressure quick decisions.

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Why Review Matters

Once signed, contracts are difficult to change or escape. Common consequences of signing without proper review:
  • Agreeing to unfavorable terms
  • Missing important deadlines
  • Waiving valuable protections
  • Taking on unexpected costs
  • Losing earnest money or deposits
  • Legal liability for breach
A few hours of careful review can prevent months of problems.

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What to Review

Verify accuracy:
  • Names spelled correctly
  • All necessary parties included
  • Property address and legal description accurate
  • Entity names correct (if LLC, trust, or corporation)
Errors in party names or property descriptions can delay closings or create title issues.
Understand all money involved:
  • Purchase price or rent amount
  • Earnest money or deposit amounts
  • When payments are due
  • Late fees and penalties
  • Who pays closing costs
  • Prorations and adjustments
Calculate total financial commitment, not just headline numbers.
Track every deadline:
  • Contingency expiration dates
  • Inspection periods
  • Financing deadlines
  • Closing or move-in date
  • Notice requirements
  • Option periods
Missing deadlines can waive protections or trigger default.
Know your protections:
  • What contingencies exist
  • How to exercise them
  • Deadlines for each
  • What happens if conditions aren’t met
  • How to waive if desired
Contingencies protect against problems. Understand them before agreeing to waive.
Clarify who does what:
  • Maintenance responsibilities
  • Repair obligations
  • Insurance requirements
  • Utility responsibilities
  • Property condition requirements
Ambiguous obligations lead to disputes.
Understand consequences:
  • What constitutes default
  • Cure periods before penalties
  • Remedies available to each party
  • Liquidated damages provisions
  • Attorney fee provisions
Know the worst-case scenarios before signing.
Know how to exit:
  • Conditions allowing termination
  • Notice requirements
  • Penalties for early termination
  • What happens to deposits
  • Post-termination obligations
Getting out of a contract is often harder than getting in.

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Red Flags

Stop and seek clarification if you see:
  • Blank spaces that should be filled in
  • Inconsistent terms (different dates, amounts, or names in different sections)
  • Provisions you don’t understand
  • One-sided terms with no corresponding protections
  • Waiver of important rights
  • Unusually short deadlines
  • Penalties without cure periods
  • “As-is” language without understanding implications
  • Arbitration clauses waiving right to sue
  • Automatic renewal provisions

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Questions to Ask

Before signing, get clear answers to: About the transaction:
  • What is my total financial obligation?
  • What deadlines must I meet?
  • What happens if I miss a deadline?
  • What can I do if problems arise?
  • How do I terminate if needed?
About specific terms:
  • What does this provision mean in plain language?
  • Why is this term included?
  • Is this term negotiable?
  • What happens if this condition isn’t met?
  • What are my obligations under this section?
About process:
  • When do I need to make decisions?
  • Who do I contact with questions?
  • What documentation do I need to provide?
  • What happens next after signing?

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When to Seek Professional Review

Consider attorney or professional review for: Complex transactions:
  • Commercial property purchases or leases
  • Multi-family investments
  • Properties with tenants
  • Unusual property types
  • Large financial commitments
Unusual situations:
  • Non-standard contract terms
  • Seller financing
  • Lease-to-own arrangements
  • Short sales or foreclosures
  • Estate or probate sales
Personal circumstances:
  • First-time buyers or landlords
  • Unfamiliar transaction types
  • Concerns about specific terms
  • Pressure to sign quickly
  • Significant financial risk
Contract issues:
  • Custom-drafted contracts (not standard forms)
  • Heavily modified standard forms
  • Terms you don’t understand
  • One-sided provisions
  • Waiver of significant rights
Attorney review for a standard residential contract typically costs 200−200-500. Compare this to the potential cost of problems from unfavorable terms or missed issues.

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Review Process

1

Request time to review

Never sign under pressure. Request 24-48 hours minimum for contract review. Legitimate parties will allow reasonable review time.
2

Read the entire document

Read every page, including fine print, addendums, and attachments. Don’t skip sections that seem standard.
3

Highlight questions and concerns

Mark anything unclear, concerning, or requiring verification. Create a list of questions.
4

Verify facts independently

Confirm property details, party information, and financial figures match your understanding.
5

Get answers to questions

Ask the other party, agent, or attorney to explain unclear provisions. Get explanations in writing if possible.
6

Negotiate changes if needed

Request modifications to unfavorable terms. Everything is negotiable until signed.
7

Seek professional review if warranted

For complex or high-stakes transactions, have an attorney review before signing.
8

Keep copies of everything

Retain signed copies of all documents, addendums, and amendments.

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Common Mistakes

Rushing due to pressure Urgency is often manufactured. Legitimate transactions allow reasonable review time. Pressure to sign immediately is a warning sign. Assuming standard forms are safe Standard forms protect both parties to some degree, but terms still vary. Read them anyway. Trusting verbal assurances “Don’t worry about that clause” means nothing if it’s in the contract. If terms don’t matter, remove them. If they can’t be removed, they matter. Focusing only on price Other terms affect total cost and risk. Contingencies, deadlines, and default provisions matter as much as price. Not reading addendums Addendums modify the main contract. They may add obligations or remove protections. Review them with the same care as the main document. Signing with blanks Blank spaces can be filled in later. Never sign documents with important blanks unfilled.

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After Signing

Keep copies Maintain copies of all signed documents in a safe place. Digital and physical copies are recommended. Track deadlines Create calendar reminders for all deadlines. Missing deadlines can waive rights or trigger default. Document everything Keep records of all communications, payments, and actions related to the contract. Act on contingencies If you have contingencies, take required actions within deadlines. Inspections, financing applications, and other conditions require affirmative steps. Ask questions early If issues arise or terms are unclear after signing, seek clarification immediately. Problems are easier to address early.

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