What is a purchase agreement?

A purchase agreement is a legally binding contract for the sale of property, which clearly outlines the terms and conditions agreed upon by the buyer and seller. This document is essential in real estate transactions, as it details important aspects such as the purchase price, financing details, closing date, and any contingencies that must be met. The enforceability of this contract is what distinguishes it from informal agreements or verbal discussions; a purchase agreement provides legal protection to both parties involved in the transaction and ensures that all expectations and responsibilities are clearly defined. This type of document is pivotal in the property transfer process, ensuring that both parties are committed to the sale under the agreed-upon conditions.