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Real Estate Transaction Basics

There are many legal and financial elements to a real estate deal. For this reason, many individuals are intimidated by the process. However, it need not be a cumbersome one. In general, a good thing to keep in mind is that although there are legal implications in real estate deals, there is no reason to treat the process as a litigation. All parties should plan to be cooperative, collaborative, and amicable.

The majority of transactions begin with a written contract and end with a closing. A typical real estate transaction usually follows these steps:

• First, ensure that all parties are present and on the same page. This includes the buyer, seller, agents, attorneys (if applicable), lenders (if a mortgage is involved), and a title company.
• Ensure all agreements for the purchase of real estate are in writing. At the closing, the ultimate purpose is to convey ownership of the property to the buyer under mutually agreed upon terms.
• On the date the buyer and seller have agreed upon, all parties will gather at the title company to complete (close) the transaction. At a basic level, the seller needs to convey the marketable title to the buyer at this time. “Marketable” means that the title covers the entire property and is free of encumbrances that a reasonable buyer would not accept. That means that it’s demonstrated that the seller actually owns the real estate and has the right to transfer ownership. The seller proves the title is marketable through a title commitment or report issued by the title insurance company. This will be prepared by the title company.
• At the closing, the seller will deliver all properly executed and notarized documents to both the buyer and seller. You may want to consult our previous article on a real estate transaction checklist to be sure you have all of the proper documents in place. Following this process, the real estate will be surrendered to the buyer and they will take possession.
• From the buyer’s perspective, they will pay the agreed-upon purchase price to the seller for the property. Unless it’s a cash deal, this process involves a mortgage from a lender to finance the purchase. That lender will require their own documents that need to be in order for the buyer to obtain the loan.
• Finally, the title insurance company has an important part to play. This company will waive, insure, or otherwise resolve all matters set forth on the title commitment. If there is a lender involved (from the previous step), the title company will review the loan documents, make sure they are accurate, and obtain the required documentation for all parties. This company also acts as the disbursing agent for the buyer and the seller. At the conclusion of this process, the title company will collect the purchase proceeds from the buyer and their lender, and then disburse the funds to the seller or any other parties as set forth in the original deal agreement. Then, the title company will issue an owner’s policy and send important documents such as the deed and mortgage to the County Recorder of Deeds Office (in the county where the property is located).

Support That Makes Your Life Easier: Transaction Management Software for Real Estate Brokers

If you are a real estate professional, you probably knew all of that. However, it’s a lot to keep track of! One way to make it easier is by setting up a shared calendar and a process to ensure your staff is on the same page and staying organized with tasks related to every real estate deal.

For agents and assistants, a systematic way of doing things that creates a level of transparency so that you’re managing all of your responsibilities and properly prioritizing tasks. This is where real estate transaction management software can help everyone in the process to move quickly and with as little stress as possible.

Real estate transaction management software is specifically designed to handle calculations regarding the management of real estate. Buying, selling, commission disbursement and more can all be handled by a robust real estate transaction management program. However, this is just one facet involved in the overall management of a real estate brokerage. There’s also the on-boarding of agents and ensuring maximum compliance, the need to oversee tasks and to-do’s as well as the granular details. There’s the mission-critical follow-up phase to send emails, handle digital signatures and so much more. A comprehensive platform can help with all of this.

There are several options for transaction management software for real estate brokers. BrokerMint offers real estate transaction management software that allows professionals to Access your documents anytime, anywhere with unparalleled ease and speed. The platform provides the ability to upload any document at any time. This enables teams to review documents, attachments, or emails as well as store information securely online.