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HOW A REAL ESTATE TRANSACTION WORKS

BUYER >>> Realtor® >>> >>> Realtor >>> SELLER
Seller’s
Buyer’s

>>>
LOAN EVALUATION OFFER PRESENTED
Before making an offer, smart
buyers apply to at least three Buyer’s Realtor presents GOOD FAITH DEPOSIT
lending sources to determine how buyer’s offer to seller’s Along with the offer, buyer submits “earnest money,” or
much they can afford to spend and Realtor, who conveys it good faith, deposit to cement the deal. Deposit is held in
to seller.
the best interest rate. escrow to be applied toward the down payment.

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SALES Working through their Realtors, seller and buyer SELLER’S DISCLOSURE
PURCHASE NEGOTIATION
AGREEMENT contingencies buyer may request, such as whether materially affect the value of the property
Seller discloses issues that may
negotiate final sales price, sales terms and any
EXECUTED sale is contingent on inspections, appraisal, and which are not readily evident.
attorney’s review, etc.

TITLE SEARCH
LOAN APPLICATION PROCESSED
Lender conducts extensive review of Concurrent with the loan process, closing agent
confirms seller has clear right to sell property
buyer’s credit report, employment, source and establishes facts, such as whether there are
of down payment, property appraisal, etc. restrictive covenants on the use of the property.

CLOSING CONTINGENCIES SATISFIED
DOCUMENTS ISSUED
Lender provides loan estimate Once financing is complete
and closing disclosure detailing and other hurdles are removed,
contingencies may drop off.
all terms and costs.

FINAL WALK-THROUGH CLOSING
1-2 days before closing, buyer confirms that the home is in
Buyer and seller
the same condition as when purchase offer signed and all sign documents and
elements that are to be conveyed are still in place.
complete sale.

SOURCES: FLORIDA REALTORS, CONSUMERFINANCE.GOV