Which document is typically used to initiate a real estate transaction?

The purchase agreement is typically used to initiate a real estate transaction as it serves as the formal document that outlines the terms and conditions under which the buyer agrees to purchase the property from the seller. This document includes essential elements such as the purchase price, closing date, and any contingencies that need to be met, making it a crucial initial step in the buying process.

While a letter of intent may express the buyer's preliminary interest in purchasing a property and outline basic terms, it is not a legally binding contract and usually lacks the detailed provisions found in a purchase agreement. Similarly, the listing agreement is a contract between a property owner and a real estate agent, executed before a buyer becomes involved, outlining the agent's duties to market the property. Though a sales agreement represents the intent to sell once accepted, it is often part of the broader purchase agreement. The purchase agreement thus consolidates all necessary terms and creates a binding commitment to proceed with the transaction, making it the key document needed to initiate a real estate deal.