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Real Estate vocabulary · Contracts, Deeds & Title

Purchase agreement

Meaning in real estate, with examples

nounCore term

In real estate, purchase agreement means: A written contract between buyer and seller that sets out the price, conditions and dates of a property sale before ownership is transferred.

In Turkish: satış sözleşmesi, satış vaadi sözleşmesi, alım satım sözleşmesi

How it is used

American English; also called a sales contract. Once both sides sign, the property is under contract. In England the matching step is the exchange of contracts, after which pulling out becomes very costly.

Example sentences

  1. Both parties signed the purchase agreement on Friday.

  2. The purchase agreement says the seller must leave the kitchen appliances.

Common collocations

  • sign a purchase agreement
  • draft a purchase agreement
  • terms of the purchase agreement
  • under contract
  • offerThe price a buyer formally proposes to pay for a property, often with conditions such as a completion date or a successful inspection.
  • contingencyA condition in a purchase contract that must be met before the sale can go ahead, such as the buyer getting a mortgage or a good inspection report.
  • earnest moneyA deposit a buyer pays soon after an offer is accepted to show they are serious. It is usually held by a third party and counted toward the price at closing.
  • closingThe final stage of a property sale, when the remaining money is paid, the documents are signed and ownership passes from the seller to the buyer.
  • escrowAn arrangement in which a neutral third party holds money or documents until all the conditions of a deal are met, then releases them to the right person.

More terms: Contracts, Deeds & Title

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