No useful reason exists to think of or treat a closing like litigation although it does happen. Everyone involved needs to work together in a cooperative way to consummate the deal. Real estate law is a function of locality and custom in many respects; however, we will generally review some commonalities in the closing of a real estate transaction.
Most real estate transactions begin with a written contract and end with a closing. The following parties are typically involved in negotiating, performing and closing on the contract:
Seller
Buyer
Real estate agents
Attorneys (depending on locality and complexity)
Lender (if not a cash deal or other financing arrangement)
Title company
All agreements for the purchase and sale of real estate must be in writing. The contract sets forth the conditions under which the seller agrees to transfer and the buyer agrees to purchase the property. The contract may be lengthy or pithy, complex or straightforward, but its ultimate purpose is to convey ownership of the property to the buyer under mutually agreed upon terms.
Occasionally, a real estate transaction may involve an IRC Section 1031 tax-deferred exchange. The tax code and treasury regulations also provide certain rules that address conveying real estate in a tax deferred exchange. A qualified intermediary (QI) is generally required and is a person or entity that is not a “disqualified person” as defined under the tax code. For the most part,