What document typically outlines the terms of a real estate sale?

The terms of a real estate sale are typically outlined in a purchase agreement. This document serves as a legally binding contract between the buyer and seller, specifying the details of the sale, including the price, conditions of the sale, contingencies, and the responsibilities of each party. It is essential for establishing the framework within which the transaction will occur, and it protects the interests of both the buyer and seller by documenting their mutual understanding of the deal.

An appraisal report provides an estimate of the market value of the property but does not outline terms of the sale. A closing disclosure is issued closer to the end of the transaction and details the final financial aspects of the sale, including loan terms and costs, but it does not serve as the initial agreement. A title report identifies the legal status of the property title, including liens or claims against the property, but it also does not contain the terms of the sale itself. Thus, the purchase agreement is the crucial document that lays the groundwork for the entire real estate transaction.