A purchase agreement is a legal document that outlines the terms and conditions of a sale between a buyer and a seller. It typically includes details such as the purchase price, payment method, and any contingencies that must be met before the sale is finalized. This agreement serves to protect both parties by clearly defining their rights and responsibilities. In real estate transactions, a purchase agreement is crucial as it formalizes the buyer's intent to buy a property, such as a house or condo, and the seller's commitment to sell it. Once signed, it becomes a binding contract, ensuring that both parties adhere to the agreed-upon terms.