Question: What is a contract?

Answer: In general terms, a "sales contract" in real estate is a written agreement accepted by both buyer and seller. A proposed contract is an "offer" until it is accepted by both parties.

There are whole libraries devoted to the subject of contracts, but -- basically -- a contract is an agreement where there is an exchange of values (my house for your money), consideration (a deposit from the buyer), and lawful content (real estate sale agreements are often required to have mandated local provisions).

Before you go house hunting, look at local offer forms. Read through them and see what they say. A well-written form, amended as required, can do much to create a smooth transaction.

For specific information, please see a broker, attorney, or legal clinic, as appropriate.