Which document is crucial during a real estate closing?

The purchase agreement is a fundamental document in a real estate closing because it outlines the terms and conditions of the sale between the buyer and seller. This legally binding contract details the property being sold, the purchase price, any contingencies, and the responsibilities of each party involved in the transaction. It serves as the foundation for the transaction and is essential for guiding the closing process.

During closing, the purchase agreement is referenced to ensure that all terms are met before the exchange of funds occurs and ownership is transferred. It also lays the groundwork for any disclosures, inspections, and financing arrangements that may be required, making it an indispensable part of the closing process. Having a fully executed purchase agreement is critical to achieve a successful and enforceable transaction.