Who's Who in a Real Estate Deal

If you’re buying or selling a home, you’ve probably already realized that it takes a lot of people to consummate a successful transaction, and it can be confusing to keep track of all these people and their responsibilities. This rundown of the cast of characters may help:

Real estate brokers represent home buyers and sellers in the real estate transaction. Buyers and sellers typically are represented by two different brokers; however, in some cases, one broker may represent both the buyer and the seller in what’s called a "dual agency." Brokers are sometimes referred to as "listing" or "cooperating" brokers. Listing brokers are real estate brokers who are hired to sell, or list, the home. Cooperating brokers are the real estate brokers who represent the home buyer in a real estate transaction.

Real estate salespeople act as agents of real estate brokers. Salespeople (otherwise referred to as agents) help buyers locate homes they want to purchase, help sellers locate buyers for homes they want to sell, and help buyers and sellers negotiate the terms of their deals. Salespeople also complete many of the other tasks that are necessary to close the transaction. (Similar to brokers, agents are referred to as "listing" or "buying" agents. The listing agent is the the agent who represents the seller and the buying agent is the agent that represents the buyer.)

REALTORS® are real estate brokers and salespeople who are members of the National Association of Realtors, a trade organization. Most, but not all, brokers and salespeople are REALTORS®.

Some real estate salespeople hire assistants, who create marketing brochures and flyers, place advertising, schedule home tours and perform other tasks. Assistants who specialize in organizing transaction-related documents are called transaction coordinators.

Mortgage brokers help borrowers select loan products, submit borrowers’ loan applications to lenders and complete much of the paperwork necessary for borrowers to obtain financing for their home. Mortgage brokers typically are paid by lenders.

Lenders evaluate and approve loan applications and then lend money to those qualified borrowers so they can buy and own real estate. Community banks, commercial banks, mortgage banking companies and credit unions are among the types of lenders that offer real estate loans.

Appraisers prepare reports on the value of real property for the benefit of lenders and buyers. Appraisers must be state-licensed.

Home inspectors prepare reports about the condition of the accessible areas and major components of real property for the benefit of buyers. (Real property is defined as land and all the things that are attached to it – including your house.) Home inspectors must be licensed in some states.

Other inspectors may prepare additional reports about the structural soundness of the home, the presence of wood-destroying pests (i.e., termites), environment hazards and so on.

Closing attorneys and escrow officers make sure all of the documents and funds associated with real estate transactions are properly organized, handled and processed.

Title companies research the chain of ownership of real property and any known liens or encumbrances and then issue title insurance, which protects lenders and owners from undiscovered claims of ownership of the property.

Title officers represent title companies and also perform the functions of closing attorneys in some states.