What type of agreement must be completed before a real estate transaction can proceed?

The purchase agreement must be completed before a real estate transaction can proceed because it serves as the legally binding contract that outlines the terms and conditions under which the buyer agrees to purchase the property from the seller. This agreement typically includes essential details such as the purchase price, closing date, and any conditions the buyer must fulfill before the transaction can be completed. The purchase agreement solidifies the commitment from both parties to move forward with the sale, making it a crucial step in the transaction process.

While the initial property listing agreement, real estate brokerage agreement, and conditional sales agreement each play important roles in real estate transactions, they are not the final step required for the purchase to be legally acknowledged and processed. The listing agreement is primarily concerned with the seller’s authorization for the agent to market the property, and the brokerage agreement outlines the relationship between the agent and their brokerage. The conditional sales agreement may come into play under specific circumstances but does not replace the need for a purchase agreement as the foundational document in executing an actual real estate transaction.