What term is used to describe a legally binding document that outlines the terms of a real estate transaction?

The term that describes a legally binding document outlining the terms of a real estate transaction is the Purchase Agreement. This document serves as the foundation for the sale of property, detailing the responsibilities, rights, price, and conditions under which the buyer agrees to purchase the property from the seller.

A Purchase Agreement typically includes important elements such as the purchase price, financing terms, closing date, contingencies (like inspections or financing approvals), and other pertinent information that governs the sale process. It is crucial for both parties to fully understand and agree upon all terms laid out in this document, as it legally binds them to the agreement.

Other options like a Lease Agreement pertain specifically to rental arrangements, whereas a Listing Agreement pertains to the relationship between a seller and a real estate agent for selling a property. An Affidavit is a written statement confirmed by oath, often used as evidence in legal contexts, but it does not specifically structure real estate transactions in the same way a Purchase Agreement does.