What information must be included in a purchase agreement?

A purchase agreement is a legally binding document that outlines essential terms and conditions of a real estate transaction between a buyer and a seller. To ensure clarity and enforceability, it must contain specific information. This includes:

• The names of the parties involved (the buyer and the seller) to identify who is entering the agreement.

• A legal description of the property, which provides a precise definition of the property being sold, distinguishing it from other properties.

• The sale price, as it stipulates the amount agreed upon by both parties for the transaction.

• The terms of sale, which detail how the purchase will be financed or any conditions that must be met for the sale to proceed.

This core information is critical for creating a clear framework around the agreement, preventing misunderstandings and disputes in the future. The other options, while they may be relevant in different contexts, do not constitute essential components of a purchase agreement. For instance, the color of the property's exterior or the year it was built are not necessary for the legal framework of the agreement. Similarly, details like the seller's previous property taxes or specific moving dates are not required elements within the agreement itself but may be discussed separately during negotiations.