What Is the Purchase and Sale Agreement (Form 21) in Washington?
In Washington State, the Purchase and Sale Agreement — NWMLS Form 21 — is the core contract used to buy and sell residential real estate. It outlines the price, financing terms, contingencies, deadlines, and closing process for the transaction.
Once both buyer and seller sign the agreement and it reaches mutual acceptance, the contract becomes legally binding.
Form 21 is used in almost every residential transaction in Seattle, Snohomish County, and across Washington State. Most other addendums and contingencies in a transaction attach to this form.
Video: Form 21 Purchase and Sale Agreement Explained
What Form 21 Covers in a Washington Real Estate Transaction
The purchase and sale agreement establishes the entire structure of the transaction, including:
Purchase price
The agreed price the buyer will pay for the property.
Earnest money
The deposit the buyer provides to demonstrate serious intent. Earnest money is usually delivered to escrow shortly after mutual acceptance.
Closing date
The date when the sale is finalized and ownership transfers to the buyer.
Possession
When the buyer receives the keys and can move in.
Included items
Form 21 identifies which appliances, fixtures, and other items remain with the home.
Default provisions
The contract also outlines what happens if either party fails to perform.
Many additional terms are added using NWMLS addenda, including financing, inspection, and appraisal protections.
When the Purchase and Sale Agreement Becomes Binding
A Washington real estate contract becomes binding at mutual acceptance.
Mutual acceptance occurs when:
- The buyer signs the offer
- The seller signs the offer (or counteroffer)
- Both parties are notified of acceptance
Once mutual acceptance occurs, the contract deadlines begin immediately.
The Most Common Addenda Attached to Form 21
Form 21 typically works together with several contingency forms.
The most common include:
Financing contingency
This allows buyers to cancel the contract if they cannot obtain financing.
Inspection contingency
This gives buyers time to inspect the property and negotiate repairs.
Escalation clause
Used in competitive markets to automatically increase an offer if competing bids appear.
These addenda are attached to Form 21 and become part of the full contract.
Key Deadlines Inside the Contract
Washington real estate contracts rely heavily on strict deadlines.
Most transactions include timelines for:
- inspection period
- financing approval
- title review
- HOA document review (for condos)
The contract also contains a “time is of the essence” clause, meaning deadlines must be met exactly.
What Buyers and Sellers Should Understand About Form 21
Although the document is called a “form,” it is a legally binding contract once signed.
Buyers and sellers should understand:
- the purchase price and financing structure
- contingency protections and deadlines
- what happens if the deal falls apart
- when earnest money could be forfeited
Experienced real estate brokers help clients understand how these terms work in real transactions across Seattle and Snohomish County.
Why Form 21 Is the Foundation of the Entire Transaction
Nearly every other document in a Washington real estate deal ties back to the purchase and sale agreement.
Inspection responses, financing notices, appraisal responses, and closing instructions all operate under the framework established in Form 21.
Understanding this document helps buyers and sellers better navigate the full transaction process.
You can explore the full library of Washington real estate process explanations here:
Bottom Line
The Washington Purchase and Sale Agreement (NWMLS Form 21) is the primary contract used to buy and sell homes in Washington State. It defines the purchase price, timelines, contingencies, and closing terms, and once mutual acceptance occurs, it becomes the legally binding framework for the entire transaction.
FAQ
What is Form 21 in Washington real estate?
Form 21 is the standard residential Purchase and Sale Agreement used in Washington State real estate transactions. It outlines the purchase price, contingencies, deadlines, closing date, and other terms of the sale.
When does Form 21 become legally binding?
Form 21 becomes legally binding when mutual acceptance occurs, meaning both buyer and seller have signed the agreement and both parties have been notified of the acceptance.
What contingencies are commonly attached to Form 21?
Common contingencies include the financing contingency (Form 22A), home inspection contingency (Form 35), and appraisal protections such as appraisal gap addenda.
Can a buyer cancel a purchase agreement after signing Form 21?
In most cases, a buyer can only cancel the agreement using a contingency written into the contract, such as inspection, financing, or title review contingencies.
Is Form 21 used in every Washington real estate transaction?
Form 21 is used in the vast majority of residential real estate transactions in Washington State. However, different contracts may be used for land, new construction, or other specialized transactions.