There are usually two parties in a real estate transaction, the owner (grantor) and the person or entity to which the owner grants or transfers ownership (grantee).
Since you are likely either selling or buying real estate, the following applies to buyers and sellers, where money is the form of compensation to the seller for their ownership interest in the real estate being sold.
- Owner announces that their real estate is for sale.
- Buyer makes an offer.
- Seller accepts buyer’s offer or makes a counter offer.
- Buyer accepts counter offer or makes a counter offer.
- When both seller and buyer agree to the offer (or final counteroffer), escrow begins.
- Escrow is the liaison between buyer and seller. The escrow officer helps to make sure that the transaction goes smoothly by coordinating title and funds.
- Upon closing of escrow, the seller receives their share of the sales proceeds, and the buyer receives the keys to the property.
- Deed is recorded with the county in which the real estate is located.
8 Basic Steps to a Real Estate Transaction