Which document is considered a formal offer to purchase a property?

A Purchase Agreement is considered a formal offer to purchase a property because it outlines the terms and conditions under which the buyer agrees to buy the property. This document typically includes critical elements such as the purchase price, closing date, contingencies, and any other necessary details that govern the transaction between the buyer and the seller.

By providing a clear framework and expressing the buyer's intent to purchase, the Purchase Agreement serves as a binding contract once it is accepted by the seller. This uniqueness is what differentiates it from other documents in real estate transactions.

For instance, a Sales Contract generally formalizes the agreement once both parties have accepted the terms, but it is often not the initial offer document. Meanwhile, a Lease Agreement pertains to rental situations rather than the purchase of property, and a Listing Agreement is a contract between a seller and a real estate broker to market the property, rather than an offer from a buyer. It is the clarity and intent embedded in a Purchase Agreement that solidifies its role as the document representing a formal offer to buy property.