What is the purpose of a real estate contract?

A real estate contract serves primarily to outline the terms and conditions of a property transaction. This includes details such as the purchase price, the parties involved, the property description, and the closing date. By clearly defining these elements, a real estate contract provides a legal framework that governs the transaction, ensuring that both the buyer and seller understand their rights and obligations.

While other options mention important aspects of real estate, they do not encapsulate the core function of a real estate contract. For instance, providing a warranty for property defects is typically addressed through specific clauses within the contract or separate agreements but is not the primary purpose of the contract itself. Similarly, facilitating the building of new structures or ensuring compliance with local zoning laws are necessary in the realm of real estate but pertain more to construction and legal compliance rather than the contractual framework of a property transaction. Therefore, outlining the terms and conditions is central to the function of a real estate contract.