Guam Real Estate Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The purchase agreement is the document that typically outlines the necessary terms for a property sale. This legal contract establishes the relationship between the buyer and seller, detailing critical components such as the purchase price, property description, contingencies, and the timeline for closing the sale. It serves as a binding agreement that ensures both parties understand their rights and obligations, making it essential in real estate transactions.

In contrast, an offer letter is often a preliminary communication expressing interest in purchasing the property but does not usually contain all the necessary terms and conditions needed for a formal sale. A lease agreement pertains to rental arrangements rather than sales, outlining terms for renting a property. An escrow agreement is focused on the management of funds and documents during a transaction but does not specify the terms of the sale itself. Therefore, the purchase agreement is the definitive document that clearly outlines the terms required for completing a property sale.