A real estate sales agreement, also known as a Purchase and Sale Agreement (PSA), is a legally binding contract between a buyer and a seller that outlines the terms and conditions for transferring property ownership.
: The street address and a formal legal description (often found on the deed) to eliminate ambiguity.
: Allows the buyer to renegotiate or back out if a professional inspector finds major defects. sample sales agreement for buying a house
: Ensures the home's valued price is equal to or higher than the purchase price; otherwise, the buyer can walk away.
: The total agreed-upon amount and the method of payment, such as all cash or bank financing. A real estate sales agreement, also known as
: A "good faith" deposit (often 1–3% of the price) demonstrating the buyer's commitment, including who will hold it in escrow.
: Protects the buyer if they are unable to secure a mortgage within a specified timeframe. : Ensures the home's valued price is equal
To be valid and enforceable, a standard agreement typically includes the following core components: