Real Estate Transaction Process
Step-by-step from offer accepted to closing day — timelines, parties, documents, and what TCs handle at each stage.
A real estate transaction has eight phases from contract acceptance to closing day. Each phase has owners, deliverables, and deadlines. This guide walks through every step — what happens, who's responsible, and what TCs handle.
For financed deals, the typical timeline is 30–45 days from contract to close. Cash deals run 7–14 days. The longest variable is loan underwriting, which is also where most delays come from.
On this page
Pre-Contract
Before the contract is signed, the agent and buyer/seller are still in negotiation. The TC isn't formally on the deal yet — but agents who have a good TC system will share early signals so the TC can pre-stage intake forms and templates.
Property listing or buyer search
AgentListing agent prepares the property for market (CMA, photos, listing description). Buyer's agent works with the buyer on financing pre-approval, neighborhood preferences, and target properties.
Showings and offers
AgentProperties are shown. Offers are written and presented. Multiple offers may be reviewed and negotiated. Counter-offers go back and forth until terms align.
Offer & Acceptance
The moment the contract is fully executed, the deal is 'in escrow' and the TC takes over the operational work.
Contract fully executed
AgentAll parties sign — buyer, seller, both agents. Day 0 of the closing timeline starts now. Most timelines (inspection, financing, appraisal) are calculated from this date.
TC opens the file
TCTC receives the executed contract from the agent, opens the file in their TC software, and pulls key dates and parties. Sends intro packets to all parties (buyer, seller, both agents, title, lender) within hours.
Earnest Money & Title Open
Earnest money is delivered to the escrow holder, and title work begins. Most contract-required deadlines for these tasks are 1–3 business days.
Buyer delivers earnest money deposit
BuyerPer the contract, buyer wires (or delivers) earnest money to the escrow holder. Typical amount is 1–3% of purchase price; some markets like NY and NJ run higher. See state-specific rules.
TC orders title commitment
TCTC notifies the title or escrow company and orders the title commitment. Title runs the title search to identify any liens, easements, or clouds on title that need to be cleared.
Disclosures delivered to buyer
SellerSeller disclosures (state-specific), federal lead-paint disclosure (homes pre-1978), HOA documents, and any other property-specific disclosures must be delivered to the buyer within the contract's timeframe.
Inspections & Contingencies
The buyer's due diligence period. Inspections happen, repair requests get negotiated, and contingencies either remove or terminate the deal.
Home inspection scheduled and conducted
InspectorBuyer hires a licensed inspector. Inspection typically happens 5–10 days after contract acceptance. Buyer receives the inspection report (often within 24 hours).
Repair requests negotiated
AgentBuyer requests repairs or credits based on the inspection report. Seller accepts, counters, or refuses. TC tracks the back-and-forth and routes signed inspection responses.
Inspection contingency removed (or terminated)
TCBy the contract's inspection deadline, the buyer either removes the inspection contingency in writing (deal proceeds) or terminates (gets earnest money back). TC ensures this signed document is filed and routed.
Appraisal & Financing
For financed deals, the lender orders the appraisal and underwrites the loan. This is the longest-tail phase and the most common source of closing delays.
Appraisal ordered and conducted
LenderLender orders the appraisal (typically days 14–18). Appraiser visits the property, comps the market, and submits the report. Buyer pays for the appraisal upfront (often $400–$700).
Loan underwriting
LenderLender's underwriter reviews everything: borrower credit, income, assets, appraisal value, title commitment. May come back with additional document requests ("conditions"). TC and lender chase these together.
Financing contingency removed
TCBy the contract's financing deadline, buyer either removes the financing contingency (loan is approved or can be approved, deal proceeds) or terminates. Pushed deadlines are common; TC tracks extensions in writing.
Clear-to-close issued
LenderLender confirms all underwriting conditions are met and issues "clear-to-close." Title gets the loan documents 24–72 hours before closing day.
Final Walkthrough
The buyer's last chance to verify the property is in the agreed-upon condition before they take ownership.
Final walkthrough scheduled and conducted
BuyerBuyer (with their agent) walks the property to confirm the condition matches what was negotiated. Key checks: agreed-upon repairs are complete, included items (appliances, fixtures) are still there, no new damage.
Closing Day
All parties (or their representatives) sign closing documents, funds change hands, and the deed is recorded.
Buyer wires closing funds
BuyerBuyer wires "cash to close" to the title/escrow company per their wire instructions — typically the day before or morning of closing. Title verifies funds receipt before closing can complete.
Closing meeting and signatures
Title/EscrowIn title-state closings, all parties meet at the title company (or sign remotely) to execute the deed, mortgage, and closing disclosure. In attorney states, the closing attorney conducts the meeting.
Funds disbursed and deed recorded
Title/EscrowTitle/escrow disburses: seller proceeds, payoff of seller's mortgage, commissions per the broker's CDA, taxes, recording fees. Then sends the deed to the county recorder. Buyer takes possession.
Post-Closing TC Tasks
The deal is closed but the TC's work isn't quite done.
File compliance archive
TCTC compiles the complete transaction file — every signed document, every disclosure, every email — into the brokerage compliance file. State broker audits can request these years later.
Post-closing follow-up
TCTC sends thank-you notes (on behalf of the agent), confirms recording, and (for sell-side) returns the seller's closing documents. May also send anniversary check-ins.
For deeper dives on specific phases, see: earnest money rules by state, attorney vs. title states, title and escrow guide, what is a CDA, and the closing timeline calculator.
Frequently Asked Questions
How long does the real estate transaction process take?
For financed deals, contract-to-close typically runs 30–45 days. Cash deals can close in 7–14 days if title is clean. Complex situations (probate, short sale, unusual title issues) can push 60+ days. The single longest variable is loan underwriting — VA and FHA loans often take longer than conventional.
What are the main steps in a real estate transaction?
Eight phases: (1) pre-contract — listing, showings, offers; (2) offer accepted and contract executed; (3) earnest money + title commitment ordered; (4) inspections and repair negotiation; (5) appraisal and loan underwriting; (6) clear-to-close issued; (7) final walkthrough and closing day signing; (8) post-closing file archive and follow-up.
Who manages the steps after a contract is signed?
The transaction coordinator (TC). Once a contract is fully executed, the TC takes over operational work: opening the file, sending intro packets, ordering title commitment, tracking deadlines, routing disclosures, coordinating inspections, chasing missing items from the lender or title, scheduling closing, and archiving the file post-close. The agent stays involved on negotiation issues and client relationships.
What is "in escrow" and what does "out of escrow" mean?
A property goes "into escrow" the moment a purchase contract is fully executed — the buyer's earnest money goes into a neutral escrow account, and the deal is being processed. The property is "out of escrow" when one of two things happens: (1) the deal closes (buyer takes ownership) or (2) the contract terminates (one party cancels per a contract provision, and earnest money is released per the contract).
What contingencies are typical in a purchase contract?
Three are most common: (1) inspection contingency — buyer can cancel based on inspection findings; (2) financing contingency — buyer can cancel if loan falls through; (3) appraisal contingency — buyer can cancel if appraisal comes in below purchase price. Some contracts also include title contingency, sale-of-buyer's-home contingency, or HOA review contingency. Each has its own deadline and removal procedure.
What happens if a contingency deadline is missed?
If a buyer doesn't formally remove (or terminate via) a contingency by its deadline, in most states the contingency is automatically removed — meaning the buyer has effectively waived their right to cancel based on that issue. They can still cancel, but they may forfeit earnest money. TCs track these deadlines closely and chase signatures aggressively to prevent accidental waiver.
What is "clear-to-close" and when does it happen?
Clear-to-close (CTC) is the lender's confirmation that all underwriting conditions have been satisfied and the loan is ready to fund. CTC typically happens 24–72 hours before closing day. Once CTC is issued, the lender sends loan documents to the title company and a closing time is locked in. CTC is a TC's favorite phrase — it means closing day is on track.
What documents does a buyer sign at closing?
On a financed deal, buyers sign 30–50 pages of documents, including: closing disclosure (final loan terms), promissory note (the IOU), deed of trust or mortgage (security instrument), various lender disclosures (truth-in-lending, escrow waiver, etc.), occupancy affidavit, tax certifications, and title-related affidavits. On a cash deal, paperwork is much shorter — primarily the deed and tax forms.
How is the earnest money handled at closing?
The earnest money sitting in the escrow account is credited toward the buyer's down payment at closing. If earnest money was $10,000 and the down payment is $40,000, the buyer brings $30,000 in cash to close (plus closing costs). If the deal terminates pre-closing per a valid contingency, the earnest money is returned to the buyer per the contract.
What is the role of a transaction coordinator in this process?
The TC owns the operational layer of the transaction from contract acceptance to post-close archive. They open the file, build the deadline calendar, route every document, track every contingency, communicate with title/lender/inspector, and ensure the file is compliant and closing-ready. A good TC is the reason a 30-day closing actually closes on day 30. See our full TC role guide for more.
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