If you are preparing to list your property on the market or are starting a search for a new home or commercial property, you should know the basics of a real estate transaction. You don't need to be well-versed in the mechanics of the transaction, but you should have some knowledge so you know what to expect. Today, we will discuss the basics of a real estate transaction in Denver.
The first thing you need to do when entering into a real estate transaction is create a listing agreement. This legal document must include the commission that will be paid to the realtor, a listing price and also mention how long the property should remain listed on the market.
The next step is for the potential buyer to put into writing what they are willing to pay for the property. This is known as the purchase offer. At this juncture the buyer will either agree to the terms of the sale presented by the seller or make a counter-offer regarding terms of the sale.
Once both the seller and the buyer sign the contracts, the transaction process enters into escrow. A neutral third party holds the contracts and funds to be used in the transaction until it is deemed that both parties meet the agreed-upon terms.
The property must then be inspected within the first couple of days of the signing of the contracts by both the seller and the buyer. Inspectors look for pests, damage and any safety issues in or on the property.
Mortgage approval is one of the final stages of a real estate transaction. It is then followed by the closing, which transfers the title or deed from the seller to the new owner.
Are you getting ready to conduct a real estate transaction in Denver? This is an important process that should not be undertaken until you have learned all of the legal ramifications of the process.