What is Agreement of Sale contract?


The agreement of sale is a contract between a seller and a buyer saying that the seller agrees to sell and the buyer to purchase some real estate under the written terms of the agreement. Conditions of the agreement of sale have to be clearly stated and agreement has to be signed by both parties.

The Agreement of Sale is often termed differently according to area and jurisdiction. Contract of Sale, Purchase Agreement, Earnest Money Contract, Contract of Purchase, or Sales Agreement are common names used to designate an Agreement of Sale, and are used almost interchangeably.

An agreement of sale can include similar information as in the following example:

Realtor and Purchaser have agreed that Realtor will sell a house worth $250,000 to Purchaser, given that the purchaser provides $50,000 cash and takes a loan of $200,000 at 7.5%. The purchase price has to be paid in full at closing.

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