Español

Este sitio también está en español. Leer en español

DictionaryThe buying process

Purchase agreement: what it means

A purchase agreement is the written contract between you and the seller that is final once the seller accepts your offer and both of you sign it. It gathers the details of the sale: the names of the buyers and sellers, the total price, the real estate agent's commission, the requested closing date and the contingencies.

In Spanish it is

Contrato de compraventa

Also written as: purchase contract · sales contract · home purchase contract

The full explanation

You use it to get your loan, and it is submitted with the closing paperwork. The settlement agent pays out the money according to the contract and the loan, and whether the seller pays some closing costs is also set by the contract.

An example

When the seller accepts their offer, Laura and Pedro sign the purchase agreement. Their agent sends a copy to the lender so the loan application can move forward.

You will see it in…

  • The contract you sign when the seller accepts your offer
  • The documents your lender asks for with your application
  • The paperwork you bring to closing

Words that go with it

You will rarely see this word alone. These are the ones that show up with it on the same papers.

More guides that use “purchase agreement”

More words on this topic: The buying process

A grandmother pushes her grandson on a playground swing.

Still confused by a paper?

A HUD-approved housing counselor can walk you through it. Agencies usually charge little or nothing, many work in Spanish, and they do not sell you anything.

What a housing counselor does See free help

Official sources

We sum up what these official sources say, in plain words. We add no rules they do not state; when a rule changes, the definition and its date change.

  1. 1. Freddie Mac · Understanding the homebuying and closing documents: purchase agreement · in English · Verified on October 17, 2026
  2. 2. Freddie Mac · Making your offer on a home · in English · Verified on October 17, 2026
  3. 3. CFPB · I'm about to close on a real estate purchase transaction with a mortgage. What can I expect in the mortgage closing process? · in English · Verified on October 17, 2026