A written contract signed by the buyer and seller stating the terms and conditions under which the property will be sold. In an agreement of sale, the purchaser agrees to buy and the seller agrees to sell.

Some Items of Note in an Agreement of Sale

•  72-hour clause
•  Pending Clear Title Check
•  Pending Improvement's
•  Indemnity against the Seller

Bankapedia's Take

More often than not people only look at the major items on an agreement of sale. One item to make careful note of is the 72-hour clause in the agreement of sale. As it gives the seller 3 days to find a better offer. Make sure to read the Agreement of sale closely, they can be lengthy 6, 7 pages or more. If you are unsure that you will be able to get financing, make sure the Agreement of sale has an out clause that allows you to get your escrow deposit back.