Which document is essential for establishing the rights and responsibilities of parties in a real estate transaction?

The purchase and sale agreement is the essential document for establishing the rights and responsibilities of parties involved in a real estate transaction. This legally binding contract outlines the details of the transaction, including the purchase price, terms of payment, contingencies, and the obligations of both the buyer and the seller. It serves to protect the interests of both parties by clearly defining what is expected from each side and the conditions under which the sale will occur.

In a real estate transaction, while an offer may initiate the process, it does not carry the same weight as a purchase and sale agreement, which solidifies the terms of the agreement after both parties have negotiated and accepted the offer. The escrow agreement is important for managing the funds and documents during the transaction, but it does not detail the rights and responsibilities of the parties involved. Similarly, the listing agreement primarily serves to outline the agent's duties and the terms under which the property is being marketed, rather than directly addressing the specific rights and obligations of the buyer and seller.