What document serves as a formal proposal to buy real estate?

The correct answer is the "Offer to purchase," which serves as the formal proposal made by a prospective buyer to purchase a specific piece of real estate. This document outlines the terms and conditions under which the buyer is willing to acquire the property, including the proposed purchase price and any contingencies or conditions that must be met for the sale to proceed.

The Offer to purchase is a critical component of real estate transactions, as it initiates the negotiation process between the buyer and the seller. Once the seller accepts the offer, it typically leads to the creation of a purchase agreement, which solidifies the terms of the sale.

In contrast, a real estate listing is primarily a marketing tool that details a property’s features and is used by agents to promote properties for sale. A closing statement is prepared at the end of a real estate transaction to summarize the financial details of the sale and outline what each party owes and what they will be receiving. The title deed is a legal document that transfers ownership of the property from one party to another but is not a proposal to buy.