2.2 - Purchase & Sale Process I Flashcards
(18 cards)
How is the U.S. approach to government housing policy described in a global context?
Distinct and unusual – relies on indirect financial supports rather than direct public development.
Name two U.S. institutions that few other countries replicate.
Fannie Mae, Freddie Mac (also FHA, VA).
What policy pattern is seen in countries with very high home-ownership rates?
More direct government involvement in building or developing housing (e.g., Singapore’s publicly built flats).
Define ‘indirect involvement’ in U.S. housing policy.
Government influences ownership via mortgage finance, tax credits, insurance, GSEs, not by building homes itself.
List the five major steps in the real-estate purchase & sale process.
- Search 2. Price & Terms 3. Negotiation & Bargaining 4. Inspections & Disclosure 5. Closing
What is the first task in any property search?
Identify the purchaser’s needs & priorities (Must-have, Nice-to-have, Indifferent).
Why is need assessment critical?
Needs are as heterogeneous as real estate itself; guides efficient screening of listings.
Two examples of ‘features easily changed’ vs. ‘hard to change.’
Easy: appliances, paint.
Hard: location, zoning.
Give three factors that make a search harder.
- Multiple constraints (tight timeline, budget, geography)
- Highly specific needs (zoning, elevator)
- Market factors (limited inventory).
What are eight common elements of a purchase & sale contract?
- Parties (buyer/seller) 2. Property description 3. Purchase price 4. Closing date 5. Conditions/contingencies 6. Disclosures 7. Offer & counter-offers 8. Signatures/initials
Who are ‘Parties’ in a contract and why do they matter later?
Buyers & sellers; their names must match grantee/grantor on the deed at closing.
What does a ‘Property Description’ include?
Legal land description plus any personal property explicitly included or excluded from the sale.
Why spell out contingencies (conditions)?
They give either party a legal exit or renegotiation trigger if specific requirements (financing, inspection, appraisal) aren’t met.
Sample residential search brief (duplex scenario).
Duplex, ≥ 4 beds/3 baths, ≤ 20-min to downtown South Bend, near parks – use Realtor.com/Zillow filters.
Sample commercial search brief (office scenario).
20-30 k sf office, ample parking, near major roads, in South Bend–Mishawaka–Elkhart metro – use LoopNet filters.
At what stage are offer & counter-offers exchanged?
During Negotiation & Bargaining (after initial price/terms discussion but before inspections).
What disclosures commonly occur before closing?
Condition reports, lead-paint, radon, HOA docs – requirements vary by state.
What is the final act that transfers ownership in Step 5?
Closing: signing and recording of the deed & settlement statement; funds disbursed.
