What is required for a real estate transaction to legally proceed?

For a real estate transaction to legally proceed, a signed purchase agreement between the buyer and seller is essential. This document serves as a legally binding contract that outlines the terms and conditions agreed upon by both parties, including the sale price, property description, and any contingencies. The existence of this signed agreement is crucial because it establishes the mutual intent to enter into a transaction and provides a basis for legal recourse should either party fail to fulfill their obligations.

While verifying the buyer's financial status, paying closing costs, and obtaining approval from local real estate boards may be important steps in the process, they are not legal prerequisites for the transaction itself to proceed. The purchase agreement is the foundational element that allows the transaction to move forward legally.