# The Purchase Agreement & Contingencies
The purchase and sale agreement (PSA) is the contract that controls how you buy the land. The most important parts for a developer are the **contingencies** — your escape hatches.
## Key terms
- **Price & deposit (earnest money)** — what you pay and what you put at risk up front.
- **Due diligence / feasibility period** — a window (often 30–120 days) to investigate the property and **walk away for any reason** with your deposit back.
- **Contingencies** — conditions that must be met or you can cancel: financing, entitlements/rezoning, clean environmental, acceptable title and survey, soils.
- **Closing date** — when you actually take ownership.
## Why contingencies matter
A developer rarely closes on land before knowing it can be built. Smart deals tie closing to **getting your approvals first** (an "entitlement contingency"): you control the land, do the rezoning, and only close once the project is approved.
## Practical moves
- Negotiate the **longest feasibility period** you reasonably can.
- Ask for **extensions** (often for an added, sometimes non-refundable, deposit).
- Make sure deposits are **refundable** during due diligence.
**Takeaway:** Tie closing to your approvals — control the land, get it entitled, then buy.
> *Educational content — not legal, engineering, or financial advice. Requirements vary by jurisdiction; always confirm with the local authority and your professional team.*
