AI Prompt for Purchase Agreement – Reference Only

FOR REFERENCE ONLY – not a substitute for legal advice from a qualified attorney.

Here is a comprehensive AI prompt designed to generate a detailed real estate purchase agreement. It is structured to provide the AI with all necessary context and variables to produce a robust first draft.

AI Prompt for Generating a Real Estate Purchase Agreement

Role: You are an experienced real estate legal draftsman. Your task is to create a comprehensive, professional, and legally-sound draft of a residential real estate purchase and sale agreement based on the specific details I provide.

Objective: Generate a complete contract document that covers all critical clauses, protections, and contingencies for a standard residential transaction. The language should be clear, formal, and suitable for a legally binding document.

Input Variables & Transaction Details:

Please use the following information to populate the agreement:

  1. Parties:

    • Seller(s): [Full Legal Name(s)], [Mailing Address], [Phone Number], [Email]

    • Buyer(s): [Full Legal Name(s)], [Mailing Address], [Phone Number], [Email]

  2. Property Details:

    • Full Legal Description: [e.g., Lot 7, Block 2, Sunnyvale Subdivision, as recorded in Map Book 12, Page 45, County of Kings, State of California]

    • Street Address: [123 Main Street, Anytown, State, ZIP Code]

    • Parcel ID (Tax ID): [123-45-67890]

    • Included Items/Fixtures: [e.g., refrigerator, stove, dishwasher, washer, dryer, window treatments, all existing lighting fixtures]

    • Excluded Items: [e.g., the antique chandelier in the dining room, the freestanding greenhouse in the garden]

  3. Financial Terms:

    • Purchase Price: [$350,000]

    • Earnest Money Deposit: [$15,000]

    • Deposit Holder: [e.g., Secure Title & Escrow Co.]

    • Financing:

      • Cash Offer: The Buyer will pay the entire balance in cash at closing.

      • Financed Offer: The purchase is contingent upon the Buyer obtaining a [Conventional / FHA / VA] loan in the amount of [$280,000] with an interest rate not to exceed [4.5]%. The Buyer shall have [21] days from the effective date to secure a loan commitment.

  4. Timeline & Deadlines:

    • Offer Expiration: This offer shall expire on [Date] at [Time].

    • Inspection Period: Buyer shall have a period of [10] days from the effective date to complete all inspections.

    • Appraisal Contingency: Buyer shall have [21] days from the effective date to ensure the property appraises for at least the purchase price.

    • Closing Date: The transaction shall close on or before [Date].

    • Possession Date: Possession shall be delivered to the Buyer at [5:00 PM on the day of closing].

  5. Contingencies & Addendums:

    • Home Sale Contingency: [Is this offer contingent on the sale of the Buyer’s current property at [123 Current Home Lane]? Specify Yes/No. If yes, state the timeframe, e.g., 60 days.]

    • Required Disclosures: Seller shall provide all state-mandated disclosures within [3] days of effective date.

    • Lead-Based Paint: The property was built in [1985]. [If built before 1978, include a lead-based paint disclosure and attachment clause].

    • Homeowners Association (HOA): [Is the property part of an HOA? Yes/No. If yes, provide HOA name and require the delivery of Covenants, Conditions, and Restrictions (CC&Rs) and financial statements within [X] days.]

  6. Closing Costs & Adjustments:

    • Specify that property taxes, HOA fees (if applicable), and utilities will be prorated as of the closing date.

    • Seller’s Closing Costs: Seller agrees to pay [e.g., the commission for the real estate agents, the owner’s title insurance policy, and any outstanding liens].

    • Buyer’s Closing Costs: Buyer agrees to pay [e.g., lender’s fees, appraisal fee, and the loan origination title insurance policy].

  7. Special Provisions & Negotiated Terms:

    • [e.g., “Seller shall, at Seller’s expense, repair the broken garage door opener prior to closing, as verified by a follow-up inspection.”]

    • [e.g., “The property is being sold in ‘As-Is’ condition, except for the specific repairs listed in this agreement.”]

Output Requirements:

  • Structure: Format the output as a formal, sectioned document with clear headings (e.g., 1. Parties, 2. Property Description, 3. Purchase Price and Deposit…).

  • Clarity: Use bold text for key terms and defined parties (e.g., Purchase Price, Seller, Buyer).

  • Placeholders: Clearly mark any areas where specific information (like names, dates, or amounts) must be inserted using brackets, e.g., [Closing Date].

  • Critical Clauses: Ensure the draft includes, but is not limited to:

    • Title and Title Insurance provisions.

    • Default and Remedies clause.

    • Dispute Resolution clause (e.g., mediation/arbitration).

    • Entire Agreement clause.

    • Signature blocks for all parties, witnesses, and a notary.

Disclaimer: Precede the generated document with the following warning in a prominent text box:

⚠️ LEGAL DISCLAIMER: This is a AI-generated draft for informational and educational purposes only. It is not a substitute for legal advice from a qualified attorney. Real estate laws vary significantly by state and locality. You MUST consult with a licensed real estate attorney in your jurisdiction to review, modify, and finalize this document to ensure it complies with all local laws and adequately protects your interests. The creator of this prompt and the AI assume no liability for the use of this document.

How to Use This Prompt Effectively:

  1. Copy and Paste the entire prompt into your AI chat interface.

  2. Fill in the Blanks meticulously with your specific transaction details before sending the prompt. The more accurate and complete your inputs, the better the output.

  3. Review and Refine the generated document carefully. It will be a powerful starting point, but it is not a final product.

  4. Consult a Professional: Provide the AI-generated draft to your real estate agent or, preferably, a real estate attorney for a final review and customization. They will ensure it includes all state-specific mandatory language and protects your legal and financial position.