?List and define the steps involved in the sale of real estate.

Question

What will be an ideal response?

Answer 1

The steps involved in the sale of real estate include the following:•Buyer's purchase offer-The buyer offers to purchase the seller's property. The offer may be conditional on, for example, the buyer's ability to obtain financing, on satisfactory inspections of the premises, or on title examination. Included with the offer is earnest money, which will be placed in an escrow account.•Seller's response-If the seller accepts the buyer's offer, then a contract is formed.The seller could also reject the offer or make a counteroffer that modifies the buyer's terms. The buyer may accept or reject the seller's counteroffer or make a counteroffer that modifies the seller's terms.•Purchase and sale agreement-Once an offer or counteroffer is accepted, a purchase and sale agreement is formed.•Financing-The buyer may seek a mortgage loan to finance the purchase. The buyer agrees to grant the lender an interest in the property as security for the buyer's indebtedness.•Inspection-The buyer has the property inspected for any physical problems, such as major structural or mechanical defects and insect infestation.•Title examination and insurance-A title examiner investigates and verifies the seller's rights in the property and discloses any claims or interests held by others. The buyer and/or seller may purchase title insurance to protect against defects in title.•Escrow-The buyer's purchase money is held in an escrow account by an escrow agent (such as a title company or a bank). The agent holds the deed transferring title received from the seller and any money received from the buyer until all conditions of the sale have been met.•Closing-The escrow agent transfers the deed to the buyer and the proceeds of the sale to the seller. The proceeds are the purchase price less any amount already paid by the buyer and any closing costs to be paid by the seller. Included in the closing costs are fees charged for services performed by the lender, escrow agent, and title examiner.The purchase and sale of the property are now complete.