Who pays for the property and receives clear title during a real estate transaction?

In a real estate transaction, the buyer is the party who pays for the property and receives clear title. When a buyer decides to purchase a property, they typically provide funds, which may come from personal savings, loans, or other financial resources, to acquire the property. This payment is crucial, as it exchanges monetary value for ownership rights.

Upon completion of the transaction, the title of the property is transferred to the buyer. This clear title signifies that the buyer has legal ownership of the property free of any encumbrances, like liens or other claims, that could jeopardize their ownership. The process also involves various legal documents that ensure the buyer officially becomes the new owner, which is a vital aspect of real estate transactions.

The other parties involved, such as the seller, agent, and escrow officer, have different roles. The seller relinquishes ownership upon receiving payment. The agent facilitates the transaction but does not take ownership or pay for the property. Lastly, the escrow officer oversees the transaction and ensures all legal protocols are observed but does not financially engage in the purchase themselves.