Purchase agreement
The signed contract between buyer and seller that sets the price, deadlines, contingencies and terms of a sale. Once both sides sign, the property is under contract.
Also called: purchase contract, sales contract, purchase and sale agreement, PSA, contract to buy
Related terms
A buyer's written proposal to buy a property at a stated price and terms. It becomes a binding contract only when the seller accepts it as written and both sides sign.
A condition in the contract that must be met for the sale to go forward, such as an inspection, loan approval or appraisal. If it fails within the deadline, the buyer can usually cancel and keep the earnest money.
A deposit the buyer puts down after the offer is accepted to show they are serious. It is held in escrow or a trust account and usually goes toward the down payment or closing costs at closing.
The date set in the contract for the sale to close. It can move only if both sides sign an amendment.
An extra document attached to the contract, usually when it is first signed, that adds terms or details. Common ones cover lead paint, HOA rules or a home sale contingency.