What is the term for a formal agreement to buy and sell real estate?

The term "purchase contract" refers to the formal agreement that outlines the terms and conditions for the buying and selling of real estate. This contract will detail crucial elements such as the purchase price, closing date, and contingencies, which are important for both the buyer and seller to understand their rights and obligations throughout the transaction process.

A purchase contract serves as a legal document that solidifies the intentions of both parties and is typically necessary for the exchange of real property to be officially recognized and enforceable by law. This agreement is a fundamental component of real estate transactions, making it essential for protecting the interests of both the buyer and the seller during the process of transferring ownership of the property.

The other options relate to different types of agreements or contracts that do not specifically cover the buying and selling of real estate in the same comprehensive way. A lease pertains to rental agreements, an option contract allows a buyer the right to purchase at a later date under certain conditions, and a broker agreement governs the relationship between a property owner and a real estate agent rather than the transaction itself.