A real estate contract is a legally binding agreement between parties involved in a property transaction, typically the buyer and seller. This document outlines the terms of the sale, including the purchase price, property description, and any conditions that must be met before the sale is finalized. These contracts often include contingencies, which are specific conditions that must be satisfied for the agreement to proceed. Common contingencies may involve financing, inspections, or the sale of another property. Both parties must sign the contract for it to be enforceable, ensuring that their rights and obligations are clearly defined.