Real estate glossary
Purchase agreement
Also called: Residential Purchase Agreement, RPA, Purchase contract, Offer
The written contract a buyer uses to make an offer; once both sides sign it, it sets the price, deadlines and terms of the sale.
A purchase agreement starts as the buyer's offer. It names the price, the deposit, how the buyer is paying, which contingencies they want and the dates everything has to happen by. In California the standard form is the Residential Purchase Agreement (RPA).
When you accept it — or you and the buyer agree on a counteroffer — it becomes a binding contract. From that point, most deadlines in the sale are counted from the date of acceptance.
What it means for you as a seller
Price is only one line. The deposit amount, contingency lengths, closing date and any credits you are asked to give can matter just as much when you compare offers.
Related terms
- AcceptanceThe moment an offer or counteroffer is signed and delivered back to the other side, creating a binding contract and starting the clock.
- CounterofferA response to an offer that changes some of its terms; it rejects the original offer and proposes new terms instead.
- Earnest money depositThe buyer's good-faith deposit, held by escrow and credited toward the price at closing.
- ContingencyA condition in the contract that must be met — or removed — by a deadline, letting the buyer cancel if it is not satisfied.
Not legal or tax advice. These explanations are general information to help you follow your own transaction. Laws, forms and customs vary by state and county, and the terms of your own contract always control. For advice about your situation, talk to your real estate agent, a real estate attorney or a tax professional. Last updated .