Real Estate Transaction
The purchase of real property can be a very exciting event but it can also be a complex process that may be completed in a very short period of time: submitting offers to purchase, handling possible bidding wars, proceeding through the mortgage qualification and approval process, obtaining home insurance and inspections, and understanding and signing legal documents.
An Overview of the Process, begins with a diagram outlining the most common of real estate transactions – the resale home purchase – and highlights four critical areas in the process: Purchase/Sale Agreements, Property Valuation, Title Registration, and Disbursements.
Some fundamental principles are the Purchase/Sale Agreement the contractual obligations of buyers and sellers, the importance of mortgage brokers reviewing the Agreement carefully, and how a poorly executed Listing Agreement could jeopardize the enforcement of the Agreement.
Once the Purchase/Sale Agreement is completed, the lender will arrange for an appraisal of the property. It means how buyers’ and sellers’ pricing expectations affect a property’s final sale price, and which factors in the market place can impact the appraised property’s value. A critical consideration is the required due diligence on the part of mortgage brokers to review the appraisal just as carefully as the Purchase/Sale Agreement by looking for red flags indicating possible fraud.
Disbursements, it covers the all the steps of the closing procedure, the payments and adjustments which must be made by either the buyer or the seller in the real estate transaction.
This overview provides people with knowledge that will help them to ensure a successful closing of real estate transactions. Take a Look to the chart: