Purchase Agreement

Importance: 0.57

Is a company: no

Is a proper noun: no

Synonyms

  • legal document
  • offer to purchase
  • written promise
  • purchase offer
  • statement

Alternate Spellings

  • Purchase Contract

Definition of Purchase Agreement

  1. 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."

Related Terms and Acronyms

  • 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.
  • 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.
  • 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.
  • 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."
  • 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.
  • Contract Definition,
    • An agreement between two or more parties that can be enforced by law.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • Guarantor Definition,
    • Someone who guarantees something.
  • Letter of Intent Definition,
    • A formal notification that a buyer intends to buy property. It is not legally enforceable.
  • Certificate of Title Definition,
    • A written document stating that the title to a piece of property is legally vested in the present owner.
  • 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.
  • Bundle of Rights Definition,
    • A set of legal rights that an owner has regarding a property.
  • Offer Definition,
    • To propose or give something.
  • Homeowners Insurance Binder Definition,
    • A document accompanying a homeowner's insurance policy that verifies the property is properly insured.
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