A Guide to the Virginia Residential Purchase Agreement

This guide explains the Virginia Residential Purchase Agreement and how it works for home buyers from contract acceptance through closing.

Buying a home comes with paperwork — and the most important document in the entire process is the Residential Purchase Agreement.

This agreement is the foundation of your purchase. It outlines the rules, timelines, responsibilities, and protections for both the buyer and the seller. Once it’s signed by all parties, it becomes a legally binding roadmap from contract to closing.

This guide walks through the Purchase Agreement step by step in a clear, straightforward way so you can understand how it works and what it means for you.

Think of the Purchase Agreement like this

If buying a house were a group project, this contract is:

• the instructions

• the due dates

• the budget

• and the backup plan if something doesn’t go as expected

Nothing in it is accidental — every paragraph exists because, at some point, something went wrong for someone, and the contract evolved to prevent it from happening again.

1) Who is involved and what property this applies to

The agreement begins by clearly naming:

• The buyer

• The seller

• The property address and legal description

This ensures everyone agrees on exactly which home is being purchased and who is responsible for fulfilling the contract.

2) Earnest Money Deposit — showing good faith

Earnest money is the deposit you put down shortly after the contract is ratified. It:

• Shows the seller you’re serious

• Is held safely in escrow

• Becomes part of your funds at closing

The contract also spells out when it must be delivered and what happens if deadlines aren’t met. This keeps the process moving and protects both sides.

3) Purchase price and how the home will be paid for

This section confirms:

• The agreed‑upon price

• How much is being paid in cash

• How much is being financed

• Any seller contributions or financing details

This matters because everyone involved — lender, title company, and seller — relies on this information to prepare for closing.

4) Closing costs — who pays what

The contract clearly outlines which expenses are paid by the buyer and which are paid by the seller. This avoids last‑minute surprises and ensures all costs are accounted for well before settlement day.

5) How the deposit is handled if something changes

Life happens. Financing issues happen. Appraisal issues happen.

This section explains:

• When the earnest money is refundable

• When it may be released

• How termination works if the contract cannot move forward

It exists to protect both parties and keep funds handled properly.

6) Financing timelines and why the lender matters

If you are using a loan, the Purchase Agreement sets expectations right away:

• The buyer must apply promptly with the named lender

• Required documents, appraisals, and underwriting must happen on schedule

Why changing lenders requires seller approval

The loan process takes the majority of time between contract and closing. Because of that, the seller agreed to this deal based on:

• the loan type

• the lender

• the closing timeline

Changing lenders later requires seller permission to protect the timeline and prevent avoidable delays. This protects you just as much as it protects the seller.

7) Representations — basic promises

Both parties confirm that:

• They are entering the agreement in good faith

• They have the authority to buy or sell

• No material facts are being intentionally misrepresented

These are standard protections and help avoid disputes later.

8) Settlement date — the finish line

This is your target closing date.

The contract allows limited flexibility for legitimate delays (such as lender requirements or title issues), but timelines still matter. Possession of the home typically happens at settlement unless otherwise agreed.

9) Title, surveys, and prorations

This ensures:

• The seller can deliver clear ownership

• Any legal or boundary issues are resolved

• Taxes, HOA fees, and other costs are fairly divided

These items may not feel exciting, but they are critical to a smooth closing.

10) Appraisal and financing protection

If the home does not appraise for the agreed price and no resolution is reached, the contract allows options for renegotiation or termination.

This protects buyers from being forced to overpay and ensures lenders can do their job properly.

11) “Physically inspected the property” — what that means

This confirms whether the buyer has personally walked through the home in person before signing.

A virtual tour or video walkthrough does not count. If a buyer has not physically entered the property, that must be disclosed with a separate addendum.

12) Repair caps — what they are (and are not)

The Purchase Agreement may include a repair cap — commonly 1%.

This cap applies only to certain required repairs, such as:

• Appraisal‑required items

• Termite or moisture findings

• Well or septic issues

• Items discovered during the final walk‑through

Important clarification:

• The cap does not limit what a seller can fix

• It limits what a seller is automatically obligated to fix without further negotiation

If required repairs exceed the cap, the parties can negotiate — or either party can terminate without penalty if no agreement is reached.

This cap does not apply to home inspection negotiations, which are handled separately.

What comes next

In addition to the Purchase Agreement, there is a Home Inspection Contingency Addendum and a Property Inspection Contingency Removal Addendum (PICRA).

Those documents govern inspections, repair requests, seller responses, and timelines. They deserve their own explanation — and that will be Part 2 of this series.

Final Thoughts

The Residential Purchase Agreement isn’t meant to trip you up — it’s meant to protect you. Once you understand how it works, it becomes a clear roadmap from contract to keys.

If questions come up as you read through this, that’s completely normal. I’m always happy to walk through any part of it with you.

Next in the series:
Part 2: A Guide to the Property Inspection Contingency Addendum & Inspection Removal Addendum, which explains the inspection phase, timelines, and how repair negotiations work.
https://hamptonroadsrealestateadvisor.com/blog/a-guide-to-the-property-inspection-contingency-addendum-and-inspection-removal-addendum

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