Kovats Real Estate School Practice Test 2025 – 400 Free Practice Questions to Pass the Exam

The purchase agreement is the document that officially outlines the terms and conditions for the sale of a property. This legally binding contract is created once the buyer and seller agree on key details such as the sale price, financing arrangements, and any contingencies that must be met before the transaction can be completed.

This document is essential as it provides a clear framework for the responsibilities of both parties, ensuring that all aspects of the deal are agreed upon and documented. It usually includes details about earnest money deposits, and contingencies related to financing or inspections, making it a comprehensive tool for both buyers and sellers to protect their interests in the transaction.

The other options serve different purposes: a lease contract pertains to rental agreements rather than sales, a rental application is used to evaluate potential tenants, and a property inspection report assesses the condition of a property but does not constitute an agreement to sell.