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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
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