What is a purchase agreement?

A purchase agreement is a legally binding contract for the sale of property. It serves as a formal document that outlines the terms and conditions agreed upon by both the buyer and the seller regarding the sale of real estate. This includes details such as the purchase price, the specific property being sold, contingencies that must be met, timelines for closing, and any representations made by either party. The legal nature of this document ensures that both parties have enforceable obligations, making it a crucial component in real estate transactions.

In contrast, a verbal agreement between buyer and seller lacks the formalized structure and enforceability of a written contract, which is necessary in real estate deals due to their complexity and the substantial interests at stake. An informal offer to buy a property may not include all terms and conditions necessary for the transaction to be valid or enforceable. Similarly, a document outlining property taxes would not pertain specifically to the agreement for sale; rather, it would relate to costs associated with owning or transferring real estate but would not serve as the contract itself.