What type of contract is typically used in real estate transactions?

In real estate transactions, a sales contract is the primary legal document used to outline the terms and conditions agreed upon by the buyer and the seller. This contract serves to identify the property being sold, the purchase price, and any contingencies or conditions that must be met before the transaction is finalized.

The sales contract is essential because it not only formalizes the agreement but also serves as a legally enforceable document that protects the interests of both parties. It delineates the responsibilities of each party, such as disclosures that must be provided by the seller and financing that must be secured by the buyer.

While lease agreements pertain to the rental of property, service contracts relate to the provision of services rather than property transactions. Partnership agreements govern the terms of a business relationship among partners and do not directly address the sale of real estate.