Ace the Texas Law Module 2026 – Smash the 20-Hour Power Test!

The term that refers to a written agreement between a buyer and a seller is known as a Sales Contract. This legal document outlines the terms and conditions of the sale, including the price, payment method, property details, contingencies, and the obligations of both parties involved in the transaction.

While the other terms presented have their own specific meanings within real estate transactions, they differ in scope and context. A Listing Agreement pertains to the relationship between a seller and a real estate broker, authorizing the broker to market the property. A Purchase Agreement may sound similar, but it often implies a more informal or preliminary document that might not encompass all legal requirements of a formal sales contract. An Offer Letter, on the other hand, is generally used to present an initial proposal to purchase a property but does not constitute a binding agreement until it is accepted and turned into a formal Sales Contract. Thus, the designation of Sales Contract specifically signifies the legally binding nature of the agreement between the buyer and seller.