What is the purpose of an Agreement of Sale?

The purpose of an Agreement of Sale is to define the terms of sale between the buyer and the seller. This legally binding document outlines essential aspects of the transaction, including the purchase price, payment terms, closing date, contingencies, and any other specific conditions agreed upon by both parties. The clarity provided by this agreement is crucial for ensuring that both the buyer and seller understand their rights and obligations throughout the transaction process.

Other choices do touch on aspects related to real estate transactions but do not represent the primary function of an Agreement of Sale. For example, securing a loan pertains to financing rather than the sale agreement itself, while tax responsibilities typically relate to post-sale issues. Similarly, assessing property value is a separate process that occurs during the property appraisal phase, which ensures that the transaction price aligns with the property’s market value.