Definition
A binding contract between buyer and seller specifying property, purchase price, financing terms, contingencies, and other sale conditions. This is the most important legal document in real estate transactions.
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The purchase agreement includes price, contingencies (inspection, appraisal, financing), earnest money, closing date, and other conditions. Once signed, it's a binding contract. Have a real estate attorney review this before signing.
Pro Tip
Review agreements carefully and have an attorney review if possible. This is your most important protection.
Example
The purchase agreement specifies a $400,000 price, 7-day inspection period, appraisal contingency, and closing on June 15 with $8,000 earnest money.