Definition
A purchase agreement is a legally binding contract that outlines the terms and conditions of a home sale. It is negotiated between the buyer and the seller.
Understanding Purchase Agreements
Once a seller accepts an offer, both parties sign a purchase agreement. It's a written document outlining terms both parties have agreed to before finalizing the sale. In simple terms, the purchase agreement includes price, closing date, and any conditions that must be met. Example: A buyer agrees to purchase a home for $250,000, with a closing date in 30 days. It's not a mortgage approval or a deed transfer. Instead, the purchase agreement sets the stage for these steps by detailing the agreement between buyer and seller.
