Purchase Agreement

Definition

• A written contract between the buyer and seller of a property that states the buyer's intention to pay a specific amount for the property by a certain date. The buyer and seller must both sign the agreement if and when the offer is accepted. Also known as a "purchase contract."

Synonyms
written promise, legal document, offer to purchase, purchase offer, statement

Alternate Spellings
Purchase Contract

Related Terms and Acronyms

• Acceptance — Definition,
  • A property seller's formal, written approval of a buyer's offer.
• Bilateral Contract — Definition,
  • A legal agreement in which both parties promise to give each other something. A purchase agreement in which the buyer promises to give money and the seller promises to transfer property is a bilateral contract.
• Binder — Definition,
  • An agreement to consider the purchase of real estate. The agreement is secured and backed by a cash deposit as evidence of good faith on the part of the purchaser.
• Bundle of Rights — Definition,
  • A set of legal rights that an owner has regarding a property.
• Certificate of Sale — Definition,
  • An affidavit issued at a judicial or tax sale that entitles the buyer to the deed to the property purchased after court confirmation.
• Certificate of Title — Definition,
  • A written document stating that the title to a piece of property is legally vested in the present owner.
• Contract — Definition,
  • An agreement between two or more parties that can be enforced by law.
• Contract For Deed (CFD) — Acronym,
  • An agreement for sale of property in which the buyer takes possession while making payments, but the seller holds title until full payment is made. Also called a land contract.
• Contract to Purchase — Definition,
  • A document in which a property's buyer and seller approve the price and other terms of the transfer of title. Also known as an agreement of sale, a purchase contract or a sale contract.
• Guarantor — Definition,
  • Someone who guarantees something.
• Homeowners Insurance Binder — Definition,
  • A document accompanying a homeowner's insurance policy that verifies the property is properly insured.
• Letter of Intent — Definition,
  • A formal notification that a buyer intends to buy property. It is not legally enforceable.
• Offer — Definition,
  • To propose or give something.
• Option — Definition,
  • A legal agreement giving someone the right to buy, sell or lease a property or item at specified terms for a specified period.
• Purchase Option — Definition,
  • The portion of a vehicle lease that determines how much a lessee pays the lessor at the end of the lease to buy the vehicle. The price is usually the residual value.
  • An agreement where a portion of monthly rent can be credited toward the purchase of a property.
• Rate Lock-in — Definition,
  • A written agreement in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set period of time.
• Right of First Refusal — Definition,
  • An agreement by an owner to give another party an opportunity to buy the property before it is offered to anyone else.
• Sales Contract — Definition,
  • A legal written document that details the agreed upon conditions between a seller and a buyer regarding the sale of a specific property. Also called an "Agreement of Sale."
• Statute of Frauds (SOF) — Acronym,
  • A law which provides that certain contracts must be in writing to be enforceable at law. This includes real estate contracts.