Each contract is unique and it depends on the situation.  Before entering into a contract, think about what you need for the property to meet your needs.  As the Buyer, you want to provide as many “outs” as possible, such as:

The Buyer may declare this contract null and void and have the full amount of his earnest money returned to him if:

1. Property is not zoned for his particular use, development, etc.
2. Buyer finds the property’s soil to be unsuitable.
3. Buyer cannot secure a loan in the amount $____ or more, amortized over ____ years, with interest not to exceed ___% per annum.
4. (Anything else you can think of that is important to you as the Buyer, insert as a contingency.)

A contract must have consideration, even if it is “but a peppercorn.”  The earnest money amount is negotiable and can be whatever the parties agree upon.  As a rule of thumb, 1-2% of the purchase price is common.

If the property is in a subdivision, you should use the legal description, such as Lot ______, Castlewoods, Phase __________, Rankin County, MS.

If the property has a metes and bounds description, you may attach a copy of the legal description as an Exhibit to the contract and have the parties sign the legal description agreeing to incorporate it into the contract.

If you do not have either of the above descriptions, then an address or parcel number will usually suffice.  However, DO NOT, for example, use a generic description like “two (2) acres subdivided from the Seller’s ten (10) acres,” as this is not specific enough to show a meeting of the minds.