Whether you purchase a spring outfit, or a new sofa, you will be involved in
a "one-step" transaction. You put your money on the table and leave with the
goods.

In a real estate transaction, there is a need to examine the "goods" more
closely than would be done with a new outfit. It is highly likely that you
will need to borrow money from a third party to complete the purchase. Thus,
buying a home involves a "two-step" process.

The two steps are 1) the initial decision to purchase a particular home
based on the value it offers, and 2) officially closing the transaction, at
a later date, by paying the price and receiving a deed.

The first step, the initial decision to purchase, is accomplished by signing
a Contract of Sale, a written document in which the seller agrees to sell
and the buyer agrees to purchase a specific property.

The price, terms, and a closing date are a vital part of the contract. Also
included is the sellers' agreement to grant the buyers "fee simple" title to
the property. This means the sellers claim to have the right to sell the
property, and are offering the buyers "clear title" to the property. Once
the contract is signed, the first step has taken place.

The second step in the purchase process, called the "closing", involves the
disbursement of funds and transfer of title by deed to the purchasers. This
may follow the contract signing by 30-90 days to allow time for the
purchaser to secure financing, and have an attorney check the title.

During the interim period, smaller steps are taken, i.e. loan application,
appraisal of the property, title search, land survey, employment and credit
verifications. The final step - closing - is the culmination of a wide
variety of efforts by a diverse group of participants, aside from the buyers
and sellers.