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 Any
purchase or sale of real property is executed by signing a
contract or deal document, which then becomes a public property.
This is termed as a real estate transaction. These are governed
by the common law property law and the state statutory. These
state laws may differ from one state to another. Also, the
agreement between the buyer and seller is governed by the
contract law, which requires the contracts to be in writing.
Moreover, according to the real estate contract law, the title
to the real property being sold should be marketable, and
the buyer should not have any undisclosed interests in the
property.
A real estate transaction usually involves a seller, buyer and a real estate broker/agent. The agent/broker acts as an intermediary in the transaction, and is usually appointed by the seller. He helps in getting potential buyers for the property, and is paid a commission on the deal. The broker and seller are bound by a contract which can be open, and the broker is paid only if he gets a buyer or it can be exclusive where the broker is paid even if the seller gets a buyer without the agent's help. The real estate transaction also involves a number of real estate agents who provides his services to a licensed real estate broker, and earns a part of commission on the deal fixed by him.
The price of a property in a real estate transaction is suggested by the agent/ broker, who are well-versed with the current market situation. The real estate transaction/documents are published in newspapers and put up on websites, for public interest, since they are a form of legal documents and a part of public record. However, one can prevent their documents from being public in certain cases to maintain privacy. In such cases it is required to consult one's legal attorney.
Before a real estate deal is closed, and the transaction is completed, it is necessary to verify all the information, and ensure that all the terms and conditions of the contract are met by both the parties. Often the real estate agent/broker plays part in closing a deal, if not a legal attorney.
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