Steps in a Real Estate Transaction From Start to Finish

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Here are the steps in a real estate transaction from start to finish.

For Sellers

  1. Seller hires a licensed real estate professional
  2. Seller’s agent conducts a CMA (comparative market analysis) to gauge homes worth
  3. Seller’s agent takes photos of the home, and creates a written description of the property
  4. Agent lists home for sale on the market (MLS) and advertises the listing
  5. Buyer’s agent presents a formal written offer stating the offered price for the purchase of the home
  6. Seller reviews the offer with their agent, and counteroffers if necessary
  7. When an agreement is made, the buyer and seller sign the official sales contract
  8. Escrow is opened; buyer delivers earnest money funds and contract to title company
  9. Title company orders survey and HOA if required
  10. Title company reviews title commitment for title defects
  11. Title company issues title commitment to buyer and buyer’s lender
  12. Loan approval received from buyer’s lender
  13. Title company receives loan closing instructions from buyer’s lender and prepares documents and statements
  14. Closing appointment is set with escrow officer at title company
  15. Closing occurs
  16. The transaction is funded; funds are distributed

For Buyers

  1. Buyer connects with licensed real estate professional
  2. Buyer connects with a lender if a loan is needed
  3. Buyer signs contract and provides earnest money funds
  4. Agent delivers contract to title company with earnest money funds
  5. Buyer orders termite and mechanical inspections
  6. Title company opens file and orders title commitment and taxes
  7. Title company obtains payoff information from seller’s lender
  8. Title company orders survey if new one is required
  9. Title company reviews title commitment for title defects
  10. Title company issues title commitment to buyer and buyer’s lender
  11. Loan approval received from buyer’s lender
  12. Closing date is set with escrow officer at title company
  13. Buyer orders homeowners insurance policy
  14. Title company receives loan closing instructions from buyer’s lender and prepares documents and closing statements
  15. Closing occurs
  16. The transaction is funded; funds are distributed

AFTER CLOSING, THE TITLE COMPANY DOES THE FOLLOWING:

  1. Returns or faxes required documents to lender for their approval. All lenders require this before funds are disbursed.
  2. Receives and disburses all money from lender, including payment of all taxes, any bank charges, attorney’s fees, title company fees and any other accrued expenses in connection with the closing.
  3. Has legal documents recorded in the office of the county clerk.
  4. Prepares and issues title policies and sends to lender and owner.

More To Explore

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