What is a Transaction in real estate terms?

• A. A process that begins after the terms of the contract have been negotiated and it has been signed
• B. A negotiation step prior to signing
• C. A type of contract
• D. A listing agreement

Answer: (A)

Transaction in real estate terms refers to the entire process that unfolds after the purchase agreement has been signed, moving a property from contract to closing. It covers all the steps and tasks needed to complete the sale: obtaining financing, performing due diligence and inspections, ordering and reviewing title work, handling disclosures, meeting contingencies, coordinating with escrow, and finally transferring ownership with the deed and funds at closing. This is not the pre-signing negotiation, nor a type of contract, nor a listing agreement—those are separate elements. The transaction is the workflow that takes a deal from signed contract to completed ownership transfer.