During the course of a property sale transaction, the contract to purchase is one of the first official legal documents that is drawn up. The contract to purchase is initiated by the buyer of the property. The most important item that it will include is the purchase price of the property. In addition to the purchase price, it will include any other applicable conditions for the sale that the buyer deems important or appropriate. The seller will then accept the contract if the conditions listed are acceptable. The contract to purchase is a binding legal document that creates certain rights and obligations for both parties. Though the two parties will later execute another agreement detailing further rights and obligations, this contract ensures that the transaction will go forward smoothly. In some transactions, this contract is known as the agreement of sale.