How to install WordPress theme

Hi all,
I am purchasing a wordpress theme and having a sketchy idea about the installation. There are a few questions think you experts may be able to help
1. Will the newly purchased WP theme be stored in my system first after purchasing or I will have to provide the WP theme seller my hosting details (I will most likely use the host that host my domain) for installing direct to the server.
2. What other tools do I need before I start working on my WP theme?
Million thanks in advance!

See original post by terence2.0