What document do Jenny and Max create when they sign an agreement regarding the price and terms of a property they wish to buy?

What document do Jenny and Max create when they sign an agreement regarding the price and terms of a property they wish to buy?

• A. Purchase agreement
• B. Purchase offer
• C. Sales contract
• D. Listing agreement

Answer: (B)

When Jenny and Max sign an agreement regarding the price and terms of a property they wish to buy, they are creating a purchase offer. This document outlines their intention to buy the property under specified conditions, including the proposed price and any terms they wish to outline. The purchase offer serves as a formal proposal from the buyers to the seller, indicating that they are prepared to enter into a legally binding agreement if the seller accepts their offer. Once the seller accepts the purchase offer, it can transition into a binding sales contract. However, at the stage where Jenny and Max are making their initial proposal, the document is referred to as a purchase offer. A purchase agreement generally refers to the finalized document that outlines the final terms of the sale after negotiation, while a sales contract is legal terminology often used interchangeably with a purchase agreement once all parties are in agreement. A listing agreement, on the other hand, is a document between a property owner and a real estate broker that grants the broker the right to sell the property, which is not relevant to the scenario of buyers negotiating a purchase.

When Jenny and Max sign an agreement regarding the price and terms of a property they wish to buy, they are creating a purchase offer. This document outlines their intention to buy the property under specified conditions, including the proposed price and any terms they wish to outline. The purchase offer serves as a formal proposal from the buyers to the seller, indicating that they are prepared to enter into a legally binding agreement if the seller accepts their offer.

Once the seller accepts the purchase offer, it can transition into a binding sales contract. However, at the stage where Jenny and Max are making their initial proposal, the document is referred to as a purchase offer.

A purchase agreement generally refers to the finalized document that outlines the final terms of the sale after negotiation, while a sales contract is legal terminology often used interchangeably with a purchase agreement once all parties are in agreement. A listing agreement, on the other hand, is a document between a property owner and a real estate broker that grants the broker the right to sell the property, which is not relevant to the scenario of buyers negotiating a purchase.