GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Purchase Agreement


Synonyms:legal document, offer to purchase, purchase offer, statement, written promise
Filed Under: financial-banking, real-estate
Tags: banking, realty
 

Definition of purchase agreement

purchase agreement
1. A written contract between the buyer and seller of a property that states the buyer's intention to pay a specific amount for the property by a certain date. The buyer and seller must both sign the agreement if and when the offer is accepted. Also known as a "purchase contract."

Related Terms and Acronyms:

  • guarantor   Someone who guarantees something.
  • homeowners insurance binder   A document accompanying a homeowner's insurance policy that verifies the property is properly insured.
  • letter of intent   A formal notification that a buyer intends to buy property. It is not legally enforceable.
  • offer   To propose or give something.
  • option   A legal agreement giving someone the right to buy, sell or lease a property or item at specified terms for a specified period.
  • purchase option   An agreement where a portion of monthly rent can be credited toward the purchase of a property.
  • rate lock-in   A written agreement in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set period of time.
  • right of first refusal   An agreement by an owner to give another party an opportunity to buy the property before it is offered to anyone else.
  • sales contract   A legal written document that details the agreed upon conditions between a seller and a buyer regarding the sale of a specific property. Also called an "Agreement of Sale."
  • statute of frauds (SOF)   A law which provides that certain contracts must be in writing to be enforceable at law. This includes real estate contracts.

More Related Terms and Acronyms

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