Which legal document initiates a real estate transaction?

The purchase agreement or sales contract is the legal document that initiates a real estate transaction. This document outlines the terms and conditions of the sale, including the purchase price, property details, and any contingencies that must be met before the transfer of ownership can occur.

By formally documenting the parties' intention to buy and sell, the purchase agreement creates a legally binding obligation. It ensures that both the buyer and seller clearly understand their rights and responsibilities, thus facilitating the entire process of transferring ownership.

In contrast, the mortgage agreement comes into play after the initial transaction has started and details the loan terms for financing the purchase. The escrow agreement is used to hold funds and documents until all conditions of the transaction are met but does not initiate the transaction itself. The title deed, while crucial for transferring ownership, is only created and signed after the purchase agreement is executed and does not kick off the transaction.