Which of the following best describes the purpose of a purchase agreement?

The purpose of a purchase agreement is primarily to establish the payment and closing details between the buyer and the seller. This legal document outlines the terms of the sale, including the price, payment methods, contingencies, and deadlines for closing the transaction. By detailing these aspects, the purchase agreement serves as a binding contract that protects the interests of both parties, ensuring that there is a clear understanding of their obligations and expectations during the transaction process.

A purchase agreement provides clarity and assurance, as it includes specifics about what will occur at closing—such as transfer of ownership, jurisdiction, and any conditions that must be met before the sale can be finalized. This structured approach is essential for legal compliance and helps prevent future disputes by providing a record of what was agreed upon.

Other options, while relevant to the broader context of real estate transactions, do not describe the fundamental purpose of a purchase agreement. For instance, negotiating the sale price is typically part of the process that leads up to the agreement, rather than the agreement itself. Competing against similar property listings and attracting potential real estate agents are aspects of marketing and sales strategy but do not pertain directly to the legal and binding nature of the purchase agreement.