After the conclusion of your contract, you must have a guarantee deed or quitclaim deed executed to effectively transfer ownership of the property. With regard to real estate, a contract of sale is a contract between a buyer who wishes to buy a house or other land and a seller who owns and wishes to sell that property. A real estate purchase contract is usually offered by a buyer and is subject to acceptance of the terms by the seller. You must use this agreement if you (a) are a potential buyer or seller of housing, if you want to (b) define the legal rights of each party to the sale, and (c) set out the respective obligations of each party prior to the transfer of title. If you do not have a real estate purchase agreement, you and the other party do not have a clear understanding of your rights, the potential risks and the economic impact of these potential risks.