Which document outlines the responsibilities of the buyer and seller in a real estate transaction?

The purchase agreement is the key document that outlines the responsibilities and obligations of both the buyer and seller in a real estate transaction. This legal contract specifies the terms of the sale, including the purchase price, financing arrangements, contingencies, closing date, and any other pertinent details that both parties must adhere to during the transaction process.

By defining the roles and expectations of each party, the purchase agreement helps to minimize misunderstandings and disputes. It ensures that both the buyer and seller have a clear understanding of their commitments, which is crucial for a successful transaction. This document is foundational to the buying and selling process in real estate, as it serves not only as a means of communication but also as a legally enforceable contract that can be referenced in the event of a disagreement.

The other options, while relevant in the context of real estate transactions, serve different purposes. The closing statement details the final costs and distribution of funds at closing, the deed of trust secures the loan with the property involved, and the appraisal report evaluates the property's value but does not address the responsibilities of the buyer and seller directly.