What documentation is typically required to initiate a real estate transaction?

The documentation that is typically required to initiate a real estate transaction is a purchase agreement. This document serves as a legally binding contract between the buyer and the seller, outlining the terms and conditions of the sale, including the purchase price, contingencies, and closing date. It is essential because it formalizes the intent to buy and sell real estate and provides a framework for the transaction, ensuring that both parties understand their rights and obligations.

A letter of intent from the buyer, while it can express interest and outline preliminary terms, does not constitute a formal agreement and is not required to start the transaction process. Similarly, a real estate agent application is not related to the transaction itself; it is used for individuals seeking to become licensed real estate agents rather than for executing a transaction. Additionally, a loan application form is generally used by the buyer to secure financing for the purchase, but it comes into play after the purchase agreement has been signed, not as a first step to initiate the transaction. Therefore, the purchase agreement is the critical document that signifies the commencement of the real estate transaction.