Buying and/or selling real estate in USA and Canada - complete step by step transaction process explained by experience Indian lawyer

1. Real Estate Transactions in
USA – Canada
Prashant Ajmera
Lawyer, Founder & Author

2. How to become a Real Estate Agent?
• Study for a certificate course for 6 months
– Laws related to real estate, how to
calculate mortgage, etc.
• Pass certification examination and get a
broker office to accept you as an agent.
Register with local licensing body and get
commercial liability insurance.
• Broker will provide office space, meeting
room and many other office facilities to
start your practice by charging a monthly
fee/rent.
• Broker will also take a small commission
from the agent’s commission – usually
80/20…

3. Real Estate Transactions in
USA – Canada
Listing process
• Seller of house approaches agent or vice
a versa
• Agreement signed between agent and
seller
• Agreement is drafted by licensing body
• Price fixed for selling of house with
consent of seller
• Agreement mentions duration of
contract between seller and agent
• Property details collected & pictures
taken
• Property listed on State Government
licensing body portal. Unique ID no.
assigned
• Portal is called MLS – Multiple Listing
Services
• All agents in the State have access to this
portal

4. Real Estate Transactions in
USA – Canada
Marketing process
• Multiple Listing Services
gives lot of publicity
since it open to public
also
• Posting ‘For Sale’ signs
and placards outside the
property to be sold
• Newspaper ads
• Flyers, emails, whats app
messages
• Website
• Staging an open house

5. Real Estate Transactions in
USA – Canada
Sale process
1. Buyer can directly approach
the seller’s agent or his/her
own agent can initiate the
process
2. Seller’s agent then
approaches seller to fix an
appointment for buyer to see
the property
3. Property is shown in presence
of one or both agents
4. Buyer not interested ……..
matter ends
5. Buyer interested…….. Has to
make an offer. Can request
another viewing

6. Real Estate Transactions in
USA – Canada
Offer Process - 1
1. Interested buyer makes an offer
2. Offer is made through a pre-
drafted Association approved
agreement. Buying price and
other terms and conditions
mentioned in minute detail
(i) Down payment and mortgage
amount also mentioned
(ii) Possession date mentioned
(iii) Inspection - Buyer pays
(iv) Home Surveyor - Buyer pays
(v) Closing date or an agreement
date with lawyer chosen by
buyer – Buyer pays
(vi) Seller’s agent presents this Offer
To Purchase to seller

7. Real Estate Transactions in
USA – Canada
Offer Process - 2
1. Seller rejects offer or accepts
offer. Can also make a counter
offer in writing
2. Seller’s agent communicates this
new offer to buyer or buyer’s
agent
3. Buyer’s agent communicates this
to buyer
4. Offer To Purchase may become
final sale or fails.
5. Offers and counter offers may go
back and forth

8. Real Estate Transactions in
USA – Canada
Process before closing
1. Offer To Purchase may become
final sale if both parties agree
2. Buyer calls his inspector to
inspect the house. If house has
major repairs, buyer can
negotiate or withdraw his offer
and Offer To Purchase is VOID.
3. Buyer calls his bank or mortgage
for mortgage
4. Buyer calls his surveyors
5. Buyer calls his lawyer to make
final Agreement To Purchase and
register the property in his name

9. Real Estate Transactions in
USA – Canada
Closing process
1. Lawyer calls seller’s agent and
asks him to provide all
documents and title deeds
related to the property
including the seller’s unpaid
mortgage amount.
2. Lawyer also asks buyer to
provide his bank/mortgage
broker details and decide the
amount to be disbursed.
3. Lawyer makes an agreement
and settles accounts to all
concerned parties.

10. Real Estate Transactions in
USA – Canada
Closing Process
(i) Buyer pays his down payment and
asks his bank to release his
mortgage amount into the escrow
account of the lawyer
(ii) Seller receives - Selling price + tax
and utilities pre-paid, mortgage
amount & any repair amount agreed
upon
(iii) Seller’s outstanding mortgage
amount transferred to bank that
gave mortgage
(iv) Seller’s agent commission
(v) Buyer’s agent commission (if any)
(vi) Lawyer is not a party and hence can
not claim his fees from this
transaction. Buyer has to pay lawyer
fees separately

11. Real Estate Transactions in
USA – Canada
Contact us:
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Mo: +91 99 74 25 30 30
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Q & A