REALWorld Law

Sale and purchase

Steps in the transaction

What are the normal steps involved in a real estate transaction?

United States

United States

After reaching agreement on the purchase price and other fundamental terms of the transaction (which are sometimes but not necessarily summarized in a term sheet), the parties negotiate a sale and purchase contract reflecting those agreed points and providing further detail regarding the transaction. There will usually be two intervals in the contract: (i) an interval between the date of the contract and an agreed upon date, during which the buyer will  carry out its due diligence and (ii) an interval between the end of the due diligence period  and the date when the title transfer takes place, called closing.