Residential real estate transactions involve more than just the needs of the buyer and seller. A thorough understanding of the entire home buying (or selling) process is necessary in order to position yourself for the best possible outcome.
1. Meeting of the minds
With financing securely in-place, the buyer makes an offer, the seller counters, and the two sides agree. Although valid, this agreement is unenforceable until written and signed in a sales agreement (reference the Statute of Frauds).
2. Under Contract
The sales agreement is signed by the buyer and seller outlining all terms of the transaction. Several processes are now concurrently initiated.
All terms of the sales agreement have been completed, the title is marketable, and the mortgage provider has approved the loan. Once these conditions are met, a third party settlement agent will prepare and administer all contractual documents necessary to close all existing liens and transfer title of the property from the seller to the buyer.
The content of this website has been prepared by Realteering for informational purposes only and does not constitute legal or accounting advice. Users and readers of this site are advised to perform their own due diligence and seek appropriate professional counsel prior to acting upon the information provided in this website.