What Is Purchase Agreement?

A purchase agreement, also called a purchase and sale agreement, is the legal document that turns a verbal understanding into an enforceable deal. It spells out the price, the closing date, who pays which closing costs, what condition the property must be in, and what happens if either side fails to perform. Once both parties sign, the buyer typically has equitable interest in the property, meaning they hold contract rights even though legal title has not transferred yet.

Wholesale purchase agreements usually include a few clauses that matter more than in a typical retail contract: an assignment clause that lets the buyer assign their contract rights to another buyer, often for a fee, an inspection or due-diligence period that gives the investor time to walk the property and confirm repair costs, and language about how earnest money is handled if the deal falls through. Contract terms differ by state, and some states restrict or require specific disclosures around assignable contracts, so the form itself should come from an attorney or a reputable state-specific template rather than a generic online download.

For a wholesale operation, the purchase agreement is the moment a seller conversation becomes an actual asset. Everything before it, cold calls, texts, offers, is prospecting. Everything after it, marketing to buyers, double closing, assigning, is disposition. A VA's role is usually limited to gathering the facts that go into the agreement, like address, condition, timeline, and seller name matching the deed, and confirming the seller understood what they signed; drafting and finalizing contract language should stay with the acquisitions manager or a licensed professional.