What is the primary purpose of a purchase agreement?

The primary purpose of a purchase agreement is to outline the terms of sale and obligations between the buyer and seller. This legal document serves to clearly define the responsibilities and rights of each party involved in the transaction. Key elements included in a purchase agreement typically cover the purchase price, payment terms, contingencies, and the timeline for the sale, among other details. Such clarity helps prevent misunderstandings and disputes, ensuring that both parties are aligned on the expectations and obligations set forth in the agreement. This foundational aspect is essential in real estate transactions, providing a structure in which to proceed towards closing the sale.