Real Estate Glossary > P > Purchase and Sale Agreement Definition

The official document received after mutual acceptance on an offer stating the final sale price and all terms of the agreement. The specific items in this contract vary by state, but will almost always include the following:

• Final sale price
• Earnest Money amount with deposit instructions; it's usually paid by a personal check, or in some markets, a cashier's check, one to three days after the document is signed
• Closing date
• Title Insurance company information
• Contingencies for financing, inspections and the title
• Seller's agreement to provide a clear title of ownership
• Addendums explaining any additional terms of the offer not included in the actual document

In states with escrow agents handling the closing process, the buyer's agent is responsible for preparing this document. In areas where attorneys handle the closing, they will prepare the document. It's signed by the buyer, seller and their respective agents. There will usually be included addendums for inspections, financing, and the title.