Residential Real Estate:
A buyer and seller often complete a binder, which outlines the proposed sales contract between the two or the contract itself. This document includes the names of the buyer and seller; the purchase price; proposed financing; the property address; what will happen if the inspection reveals problems with the house; and what will occur if the buyer cannot get a mortgage.
A contract is a binding document that outlines key issues of the sale. It includes the purchase price; mortgage contingencies; names of parties involved; proposed closing date; and the exact property involved in the sale. This legally binding document also includes what the seller will leave in the house, such as doorknobs, window shades, built-in furniture or ceiling lights.