What Are the Steps of a Real Estate Transaction?
A real estate transaction is the process that takes place when a seller is selling their property, and a buyer is ready to purchase it. During this process, the rights of a property are transferred from one person to another. A real estate transaction requires the help of a lawyer to go through it properly. If you want to know more about this process, Gujral Law Professional Corporation serving clients in Mississauga, Ontario, has prepared essential information about real estate transactions and their steps:
The Steps of a Real Estate Transaction
- The purchase agreement / contracts. The transaction begins with a purchase contract known as an agreement between a seller and a buyer.
- The offer. It should include the price and stipulations that allow parties to back out of the contract in specific situations.
- Counter-offer and acceptance. The purchase contract may not be accepted immediately. If there is something in the agreement that a seller disagrees with, they can provide a counteroffer.
- Earnest money deposit. A certain amount is deposited into an escrow/trust account of either brokerage or lawyer. If specific provisions prevent the transaction from being completed, money is returned to the buyer. It is a crucial step of a real estate transaction, and the help of a lawyer here is beneficial.
- Obtaining financing. This step involves the mortgage approval process that may take usually between 30 and 90 days.
- Review of Mortgage Instructions/ document. Few days before the closing, the purchaser’s lawyer receives the document containing the mortgage details. It has to be reviewed by a lawyer and if there is any problem with the document, a mortgage company will need to change it or amend it.
- Closing. It is the final step of a real estate transaction.
Gujral Law Professional Corporation in Mississauga, Ontario – Get the Legal Help That You Need
If you are buying or selling a property and need legal advice on property disputes, Gujral Law Professional Corporation is ready to help. Mr. Tarunjeet Gujral has years of experience and specializes in different legal questions, including real estate transactions. If you have any questions or are ready to schedule an appointment, feel free to contact us at (647) 957-8077.Back to Real Estate Page