What is a written agreement in which a purchaser agrees to buy and a seller agrees to sell referred to as?

A written agreement in which a purchaser agrees to buy and a seller agrees to sell is referred to as a contract. In the context of real estate, a contract outlines the terms and conditions of the transaction, including price, closing date, and any contingencies that may apply. It serves as a legally binding document that confirms the intentions of both parties to engage in a sale.

The significance of using a contract in real estate transactions cannot be overstated, as it provides the necessary legal framework to enforce the agreement. Without a contract, there may be difficulties in establishing expectations, responsibilities, and rights, leading to potential disputes.

Other options, such as a bill of sale, typically refer to the transfer of personal property rather than real estate, and are not appropriate in this context. Likewise, an offer to purchase may initiate negotiations but does not confer the mutual agreement that a contract does. A memorandum of understanding may outline intentions or an agreement in a general sense but lacks the binding nature typical of a contract. Thus, the term "contract" is the most accurate and encompasses the agreement between the purchaser and seller in this scenario.