- 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."
legal document, statement, offer to purchase, purchase offer, written promise
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,
- An agreement where a portion of monthly rent can be credited toward the purchase of a property.
- 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.
- 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.