A purchase agreement (sales contract) is ...

• A. A lease between buyer and seller
• B. An agreement to borrow funds for a property
• C. An agreement between a buyer and seller to convey real estate
• D. A contract for property appraisal

Answer: (C)

A purchase agreement is a contract between the buyer and seller that sets up the transfer of real estate in exchange for a stated price. It describes the property, the purchase price, what is included, and the terms of the deal, including any conditions like financing, inspections, title review, and the planned closing date. Once signed, it binds both sides to complete the sale, with ownership transferring to the buyer at closing and payment made as agreed, subject to the stated contingencies. It isn’t a lease, which would create a tenancy; nor a loan agreement to borrow funds; nor just an appraisal contract. An appraisal or financing contingency can be part of it, but the document itself is the agreement to convey ownership.