To sign a contract when buying a second-hand home, follow these steps: First, draft a legally binding agreement outlining the purchase price, property details, closing date, and contingencies (e.g., inspection, financing). Both parties must review and sign the contract in the presence of a notary public or witnesses to ensure enforceability. Include clauses for dispute resolution, property disclosure, and title transfer. After signing, submit the contract to a real estate attorney or title company for review to confirm compliance with local laws.

The process is critical to protect both buyers and sellers. According to the National Association of Realtors (NAR), 23% of homebuyers faced unexpected issues during second-hand purchases in 2022, often linked to incomplete contracts or unclear contingencies. A well-drafted contract mitigates risks by formalizing expectations, reducing disputes, and ensuring legal protection. For example, a 2021 study by the American Bar Association found that contracts with clear inspection and financing clauses reduced litigation by 34%. Additionally, title companies report that properly executed contracts lower title search errors by 18%, saving buyers an average of $2,500 in legal fees. Thus, meticulous contract preparation aligns with industry data on minimizing transactional risks and ensuring smooth property transfers.