What is the purpose of a purchase agreement?

The purpose of a purchase agreement is to document the terms and conditions for the sale of a property. This legally binding contract outlines the specifics of the transaction, including the purchase price, financing details, and any contingencies, such as inspections or appraisals. By clearly stating the rights and responsibilities of both the buyer and the seller, the purchase agreement helps to avoid misunderstandings and disputes during the conveyance process. It serves as a foundational document that both parties must adhere to, ensuring that the transaction proceeds according to the agreed-upon terms.

In contrast, outlining payment referral options, estimating market value, or providing a marketing plan are not central functions of a purchase agreement. These aspects may be relevant in the broader context of real estate transactions but do not define the main purpose of the purchase agreement itself.