Your guide to common closing terms
What is a purchase? Purchase is the term used to refer to a transaction when a seller agrees to sell their house to a buyer. This is typically formalized through a Purchase and Sale Agreement or Residential Purchase Agreement.
A purchase and sale agreement is a document that records the terms agreed to by a buyer and seller upon the purchase of a property. These terms include the rights and obligations of each party surrounding issues of financing, timeline, settlement, and recordation.
A REALTOR™ is a member of the National Association of REALTORS, the largest trade association in the United States, representing 1.4 million members. REALTORS™ can include both residential and commercial brokers, agents, property managers, and other professionals in the real estate industry.
A real estate agent is a real estate representative who works on behalf of a real estate broker to represent a buyer or seller during a real estate transaction. Real estate agents are licensed but must be affiliated with and work under the supervision of a real estate broker.
A real estate attorney specializes in legal issues surrounding the transfer and purchase of property, including mortgage, title, purchase, and transfer documents. In some states, a real estate attorney is required at closing, while in others, a real estate agent and a title company representative will handle the legal aspects of the transaction.