U.S. Mortgage Index

Purchase contract

Also called Purchase agreement

Definition

A purchase contract is the written agreement between buyer and seller to purchase a home. Official consumer material also calls it a purchase agreement. It is not the purchase price, not earnest money, and not a contingency.

In plain English

Before a mortgage can close on a purchase, the buyer and seller usually have a signed written deal. That document is the purchase contract. Purchase price is the number in the deal. Earnest money is the deposit. Contingencies are conditions inside the contract. The contract is the agreement itself.

Technical definition

CFPB's official Ask CFPB purchase-contract page is PRIMARY. It defines the purchase contract or purchase agreement as the written residential real-estate contract. The Find the right home page is supporting context for sales-contract contingencies.

Why it matters

Loan officers, real-estate agents, and shoppers use purchase agreement, sales contract, and contract interchangeably. The page keeps the written deal distinct from price, deposit, and conditions.

Sources reviewed

Important note

A purchase contract is the written buyer-seller agreement. Required terms and remedies vary by state. This is not legal advice and is distinct from purchase price, closing costs, earnest money, and contingencies.