Residential real estate requires the buyer and the seller to first sign a written land contract in order to buy or sell a home. Once the land contract has been signed, the buyer is given time to conduct a title search of the premises and to obtain the necessary financing to make the purchase.

The transaction then proceeds to the closing. At the closing, a real estate deed passes ownership from the seller to the buyer. In exchange, the buyer pays the seller the balance of the purchase price.