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REAL ESTATE TRANSACTIONS
This page is about real estate transactions, and
provides related information such as real estate transactions,
real estate mortgage, commercial real estate, real estate
investment, buying a home, the real estate broker, and Federal
Fair Housing Act.
Real estate transactions are governed by federal,
state as well as common laws. State laws on real estate
transactions vary from state to state. The real estate seller
usually employs an agent called a real estate broker, who acts in
the seller's behalf and obtains a buyer for the property. The
agreement between the seller and the broker is embodied in a
contract called a listing agreement, which may either be an open
or an exclusive agreement.
A listing agreement is open if the real
estate broker earns his commission only if he/she finds a buyer.
An exclusive listing agreement on the other hand is one where the
real estate broker is the only agent entitled to a commission when
a buyer is found, even if it was the seller who found the buyer. In all transactions involving real estate, the
Federal Fair Housing Act ( see Title 42, sec. 3601-3631 U.S. Code
) prohibits discrimination on account of race, color, religion,
sex, or national origin. Section 3606 of the Federal Fair Hosing
Act, specifically prohibits real estate brokers from doing any
acts of discrimination.
Am I required to get a real estate broker
before I can sell my house?
No, a real estate broker is not a requirement for real estate
transactions. This type of selling is known as FSBO (For Sale By
Owner). However, if you are not aware of the legal
requirements of real estate transactions, you are better off
getting a real estate broker, who, for a fee (or commission), can
save you time and money, as well as save you from a lot of
headache. What do I need to know if I intend to
sell my house without the aid of a real estate broker?
Before anything else you will need the ability to attend to a
myriad of details and paperwork. You need to know the market value
of your property, in order to set a realistic price. Know the
process of negotiating offers and closing deals. Familiarize
yourself with your local state laws and guidelines on real estate transactions.
Make sure there are no encumbrances (claims) on your property,
which could slow down the transfer of ownership. Check if your
state requires you make any disclosure regarding the physical
condition of your property, and check for the involvement of
attorneys or other professionals in the transaction. You generally
get more out of an FSBO transaction in situations where the demand
for homes is high such as in hot or seller's market and/or when
you're not in a hurry to sell.
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