Home Buying Contract Signing Key Points
You should sign three contracts when closing the deal: the standard existing-home sales contract, the supplemental agreement, and the brokerage service contract.
In some cities, you only need to sign one contract, usually called a purchase-and-sale brokerage service contract, which essentially combines the three into one. The existing-home sales contract and the supplemental agreement are really just two parts of the same deal—one is the official government template that can't be altered but only filled in, while the other is entirely self-drafted, though often by the agent. That means these documents don't necessarily protect your interests.
The brokerage service contract is the agency's own form and the basis for collecting the commission. Without signing it, the agent won't let you off the hook.
The price agreed with the agent must be written into the contract. Even if many agents don't force you to pay immediately, the contract will typically state that the commission is due upon signing. As the buyer, the later you pay the commission, the better—ideally scheduled after the title transfer. You can also require the agent to include a clause in the brokerage contract stating "full refund if the transaction fails."
To ensure they get paid, brokerage contracts usually contain a provision that the commission is owed regardless of whether the buyer or seller breaches. However, the party who pays the commission can seek reimbursement from the breaching party.
Every sales contract hinges on three key elements:
• The transaction process
• Timeframes
• Liability for breach
Everything else is detail. Make sure the contract clearly specifies the parties involved, the property's location and size, and the total or unit price. If the property has co-owners, all of them must sign to avoid a situation where a co-owner later refuses to sell, blocking the transfer of ownership.
Key dates—such as down payment, title transfer, and handover—must be explicitly stated, ideally spelled out separately in the supplemental agreement without contradictions. Ambiguity here will only lead to disputes down the line.
If there are household registrations (hukou) attached to the property, specify the deadline for removal and attach a substantial penalty for noncompliance. Courts won't order someone to move their hukou, so converting that obligation into a financially enforceable penalty is essential to protect your rights.
Additionally, buyers should pay close attention to who bears the transaction taxes and fees.
For further reading: What should you watch out for when signing a contract to buy a resale home?