Contract

An oral or written agreement to do or not to do a certain thing. In a real estate transaction, contracts are almost always written. Many states deem oral contracts as legal, but unenforceable. The contract for sale typically directs all the activity and events leading up to the conclusion or closing of a contract. It typically contains the contracted price, closing date, closing attorney's name, amount of down payment, type of loan, inspection periods, possible contingencies (such as the contract being subject-to appraisals, home inspections, termite inspections or loan approval, among others) and – most importantly – a description of the parties (who are the buyers and sellers).