What is a legally binding agreement between a buyer and seller detailing the sale of real estate called?

A legally binding agreement between a buyer and seller that outlines the terms of the sale of real estate is known as a Sales Contract. This document is crucial as it specifies the obligations of both parties, including the purchase price, deposit amount, contingency clauses, and the timeline for the transaction. The Sales Contract serves to ensure that all parties have a clear understanding of their rights and responsibilities, thereby reducing the likelihood of disputes during the sale process.

The other options, while related to real estate transactions, serve different purposes. A Lease Agreement pertains to the rental of property rather than a sale. A Deed of Trust involves securing a loan against a property but does not function as an agreement for the actual sale. A Purchase Option provides the buyer with the right to purchase the property at a later date but does not itself constitute a binding agreement for the immediate sale of real estate.