The Michigan Regional Purchase Agreement is the contract used to establish the terms under which a buyer offers to purchase real estate and a seller may accept that offer. The agreement identifies the property and purchase price and addresses important parts of the transaction including financing, appraisal, contingencies, inspections, title, closing, possession, and earnest money.
The version reviewed in this guide is the Michigan Regional Purchase Agreement, Revision Date 3/2026. Because the agreement contains deadlines, choices, blank spaces, and provisions that can be modified by the parties, buyers and sellers should review the terms actually entered into their individual agreement rather than assuming every purchase agreement contains identical terms
What Is the Michigan Regional Purchase Agreement?
The Michigan Regional Purchase Agreement sets out the terms of a buyer’s offer to purchase a specific property. When the offer is accepted according to the terms of the agreement, it becomes a binding agreement between the buyer and seller. The seven-page form identifies the property, purchase price, financing terms, contingencies, inspections, title requirements, closing, possession, earnest money, and other terms of the transaction.
The agreement also contains numerous choices, deadlines, and blank spaces that are completed as part of an individual offer. Because those selections become part of the transaction, buyers and sellers should review the terms actually entered into their Purchase Agreement rather than assuming every agreement contains the same terms.
When Does the Purchase Agreement Become Effective?
The agreement defines the Effective Date as the date the seller’s acceptance of the buyer’s offer is delivered to the buyer or buyer’s agent, or the date the buyer’s acceptance of a counteroffer is delivered to the seller or seller’s agent, depending on the situation.
The agreement also states that references to “days” mean calendar days, with the first calendar day beginning at 12:01 a.m. on the day following the Effective Date. References to time mean local time where the property is located.
That makes the Effective Date particularly important because numerous deadlines contained later in the agreement are calculated from it.
Agency and Seller Disclosures
The agreement acknowledges that the buyer and seller have read and signed the Disclosure Regarding Real Estate Agency Relationships and identifies the agency status of the selling licensee.
For sales of one-to-four family residential units, the agreement also addresses whether the buyer has received the Seller’s Disclosure Statement. The form contains specific termination provisions depending upon whether and how that disclosure has been received and also provides for situations in which the seller is exempt from the Seller Disclosure Act.
For transactions involving homes built prior to1978, the agreement states that a written Lead-Based Paint Addendum is required and becomes an integral part of the agreement.
We’ll explain both the Seller’s Disclosure Statement and Lead-Based Paint Addendum separately in this document series.
Property Description and Purchase Price
The agreement identifies the property being purchased by location, mailing address, legal description, and tax parcel identification number. It also contains additional provisions dealing with unplatted land and potential land divisions when applicable.
The Purchase Price section states the amount the buyer is offering to pay, followed by a section for any seller concessions.
How Will the Purchase Be Financed?
The Terms section establishes the method of purchase. Only the terms marked with an “X” apply.
The agreement provides options including cash, new mortgage financing, seller financing, equity arrangements, and other terms. Each financing option contains its own requirements and provisions.
For example, under the New Mortgage provision, the form contains spaces for the type and term of the mortgage, percentage of the purchase price, maximum interest rate, and the number of days the buyer has after the Effective Date to apply for the mortgage.
Because the financing provisions vary according to what is selected and entered on the agreement, buyers should review the actual financing terms contained in their offer.
What Happens if the Appraisal Is Below the Purchase Price?
Section 9 specifically addresses an appraisal obtained by the buyer or buyer’s lender that states a value below the Purchase Price.
Under the printed provision, the buyer has three days after receiving the appraisal to provide written notice to the seller either terminating the agreement and receiving a refund of the earnest money deposit, or making a written proposal to the seller. That proposal must be in the form of an addendum signed by the buyer.
The agreement then establishes additional procedures and three-day response periods if the parties attempt to negotiate an appraisal-related change. If the buyer does not terminate or present an addendum within the initial period, the agreement states that the buyer is deemed to have accepted the appraisal as-is.
Is the Purchase Contingent on the Buyer’s Current Property?
The agreement provides three choices regarding another property owned by the buyer.
The buyer’s obligation can be not contingent upon another sale, contingent upon closing an existing sale or exchange, or contingent upon the sale and closing of another property.
Each selection has different provisions, so the specific box selected and any information entered into that section are important parts of the buyer’s offer.
What Fixtures and Improvements Are Included?
Section 11 contains an extensive list of improvements and items included in the Purchase Price if they are currently in or on the property, unless rented. Examples include buildings, landscaping, certain attached smart-home and security equipment, lighting fixtures, ceiling fans, built-in kitchen appliances, attached mirrors and shelving, heating and air-conditioning equipment, fencing, underground sprinkling, garage-door openers and other listed items.
The agreement also provides spaces to specifically identify additional items that are included or are not included.
What About Rented Items, Fuel, Assessments and Property Taxes?
The agreement separately addresses rented improvements or fixtures. If rented items exist, the seller agrees to provide copies of the rental agreements showing terms and payment obligations within three days of the Effective Date. The agreement states that if no rental agreements are provided within that period, the seller represents that no improvements or fixtures are rented.
Sections 13 through 15 address heating and cooking fuels, assessments and property taxes. The tax section provides different choices for handling taxes and specifically advises the buyer not to assume future property tax bills will be the same as the seller’s current tax bills.
Well and Septic Inspections
When the Well/Septic provision applies, the agreement provides for either the seller or buyer, as selected on the form, to arrange and pay for an inspection of the primary well used for human consumption and septic systems in use on the property within ten days after the Effective Date.
The agreement then contains procedures for what happens if the report discloses conditions unsatisfactory to the buyer or conditions that do not meet county standards that are a condition of sale. These include written termination or a proposed addendum, along with specific response periods.
Inspections and Investigations
Section 17 gives the buyer, or someone selected by the buyer, the right to inspect the buildings, premises, components and systems at the buyer’s expense.
The agreement also places responsibility on the buyer to investigate specified matters including code and ordinance compliance, zoning for the buyer’s intended use, availability of acceptable homeowner’s insurance, whether the property is in a flood zone, and disclosed rented items.
The number of days allowed for these inspections and investigations is entered into the agreement. If the results aren’t acceptable, the printed agreement provides procedures for written termination or proposing corrections through a signed addendum. It also contains an option for the buyer to waive all rights under the Inspections & Investigations paragraph.
Title Insurance and Property Survey
The Title Insurance section provides for the seller to convey marketable title subject to the conditions identified in the agreement. It also provides for title insurance and establishes procedures if the buyer objects to conditions contained in the Title Commitment.
The following section addresses a property survey. The agreement advises that the buyer should have a survey performed to satisfy the buyer regarding property boundaries and the location of improvements. It provides an option for a buyer- or seller-paid boundary survey or for no survey, in which case the buyer waives the rights under that paragraph.
Municipal Compliances, Home Protection Plans and Prorations
The agreement states that the seller will arrange and pay for current certificates of occupancy, sidewalk compliance, and smoke detector ordinances if applicable. It also states that buyers and sellers have been informed that home protection plans may be available.
The Prorations section addresses items such as rent, association dues or fees, assigned insurance, and interest on an existing land contract, mortgage, or lien assumed by the buyer. These items are adjusted to the date of closing, with the agreement presuming for purposes of calculating prorations that the seller owns the property through the day before closing.
Closing and Final Walk-Through
The Closing section establishes a closing deadline and contains provisions addressing certain delays involving title defects, survey problems, or lender-required inspections and repairs.
The agreement also allows the buyer to reserve or waive the right to conduct a final walk-through within three days of the scheduled closing date. According to the form, the purpose is to determine whether the property is in substantially similar condition as of the Effective Date, whether contractually agreed-upon items have been fulfilled, and whether included personal property remains at the property.
When Does the Buyer Get Possession?
Possession is addressed separately from closing.
The agreement provides choices for possession at completion of closing or at a specified time on a later day, along with provisions addressing seller occupancy after closing.
On the agreed delivery date, the form requires the seller to deliver the property free of trash and debris and in broom-clean condition, remove personal property unless otherwise agreed, make arrangements for final utility payments, and deliver the keys to the buyer.
How Does the Earnest Money Deposit Work?
Section 26 identifies the amount of the Earnest Money Deposit and who will hold it.
Under the printed agreement, the deposit is to be submitted within 72 hours of the Effective Date and applied against the Purchase Price. If it isn’t received within that period or is returned for insufficient funds, the agreement gives the seller a right to terminate until the deposit is received.
The agreement also contains detailed provisions addressing refunds when a contingency isn’t satisfied for a reason other than the buyer’s fault and procedures for determining disposition of the deposit when buyer and seller disagree.
Professional Advice and Disclosure of Transaction Information
The agreement advises both buyer and seller to seek appropriate legal, tax, environmental, and other professional advice relating to the transaction. It also states that the broker does not make representations or warranties regarding the advisability or legal effect of the transaction and recommends that the buyer retain an attorney regarding marketability of title and the required details of the sale.
The agreement also states that after closing, the purchase price, terms, and other transaction details are not confidential and will be disclosed to REALTORS® participating in the applicable Multiple Listing Service and may be used or published by that MLS in its ordinary course of business. Section 29 then provides space for any Other Provisions.
Written Changes to the Purchase Agreement
The agreement states that it represents the complete agreement between buyer and seller and that there are no oral agreements between them relating to the transaction.
It further states that the Purchase Agreement may be amended only in writing, signed by the buyer and seller, and attached to the agreement.
That’s why we’ll have a separate guide covering the West Michigan Regional Addendum to Purchase Agreement.
Electronic Signatures and Wire Fraud
The agreement provides that signed copies, amendments and addendums transmitted electronically can serve as evidence of their contents and states that electronic signatures are the legal equivalent of manual or handwritten signatures.
It also contains a specific Wire Fraud warning advising buyers and sellers to independently verify electronic communications directing them to transfer funds or provide nonpublic personal information and not to use telephone numbers contained in a suspicious email.
Offer Expiration, Seller Response and Acceptance
The buyer gives the seller until the time and date entered in Section 33 to deliver written acceptance of the offer. The agreement states that when accepted by the seller, the offer constitutes a binding agreement between buyer and seller.
The seller can accept the offer as written or respond differently. If the seller’s response occurs after the buyer’s offer has expired, the form states that the seller’s response is considered a counteroffer requiring the buyer’s acceptance. The final sections provide for the seller’s acceptance, buyer’s receipt or acceptance of a counteroffer, and seller’s receipt of that acceptance.