What is Purchase Contract?
“Purchase contract” is the general term for any binding agreement to buy property; in residential sales it usually means the same thing as the purchase agreement. It identifies the parties and property, states the price and deposit, and lists the conditions both sides must meet to close. A signed purchase contract is what puts a property “in escrow.”
Example: After negotiation, buyer and seller sign a purchase contract setting price, deposit, and contingencies — the document that opens escrow.