The United States is a country with a well-developed legal system, which in real estate is manifested by clear and strict laws, clear property rights and transparent operations.

In addition to the broker, there are the following roles that must be known when buying a home in the United States.

Buyer's agent

U.S. real estate brokers need a government-issued broker's license to work, which is the most basic requirement. The responsibility of a buyer's broker is to faithfully follow the buyer's requirements, find the right property on behalf of the buyer, coordinate all aspects of the transaction, including assisting in arranging all matters related to the purchase of real estate, negotiating with all those involved in the transaction or coordinating the handling of the transaction.

When dealing with overseas clients, brokers need to take on additional tasks, such as helping clients unfamiliar with the United States to understand the country and to determine the city and type of home they are buying.

Usually, the buyer's broker will receive a commission from the seller when the transaction is successfully completed.

Seller's Broker

Again, a seller's broker requires a broker's license. Their duties are to faithfully represent the seller's interests, find a buyer, and coordinate all aspects of the transaction in accordance with the seller's requirements.

Simply put, a real estate transaction in the United States is not a communication between the buyer and the seller, but a communication and negotiation between the brokers representing the interests of both parties.

Usually, the buyer's broker cannot contact the seller, and the seller's broker cannot contact the buyer, but both brokers' commissions are paid by the seller.

Third party escrow company

A third party escrow company, a third party service company, through which the third party service company takes an impartial third party position to hold the legal documents and funds on behalf of the buyer and seller, and distribute them according to the negotiation results between the buyer and seller.

The buyer and seller determine their intention to purchase a home, sign a contract, the buyer pays a deposit, prepares the home inspection, and the seller provides information about the home.

When both parties determine to proceed with the transaction, the buyer needs to provide the final payment to the third-party escrow company for escrow. The third-party escrow company will settle all the taxes and debts of the house according to the results of the contract negotiation, pay the brokerage commissions of both parties, and then transfer the remaining amount to the seller.

A third party escrow company plays an important role in real estate transactions. It monitors the transaction process from a third party's perspective, protects the rights and interests of both parties to the transaction, does not favor the buyer or seller, and ensures a smooth transaction process.

Home inspector

A home inspector is a professional job that also requires a government-issued license to work as a home inspector.

This role also belongs to an independent third party that tests the quality of various facilities of the house at the request of the buyer or lender to see if it meets the government indicators.

A second home inspection is essential to determine if the house is consistent with the seller's description. If problems are found, the buyer can negotiate with the seller to repair or reduce the house payment, etc.

If serious problems are found, the buyer also has the right to cancel the contract without liability.

Real Estate Appraiser

A real estate appraiser, as a professional job, requires a government-issued real estate appraiser's license before starting work.

This is an independent third party, hired by the buyer or requested by the bank's lending department, who is responsible for providing a professional report on the value of the property.

Because this role can influence the negotiation of transactions and the granting of bank loans, the government has been strengthening the regulation of the industry to maximize the influence of the parties to the transaction on the appraiser, thus ensuring the objectivity of the value assessment.



Loan Banks and Loan Brokers

Loan banks and loan brokers are responsible for investigating the financial and credit status of applicants and providing them with loans for home purchases.

Loans involve credit checks. Credit checks in the U.S. collect credit history of people's loans and debts from credit card companies, bank loan departments and other related companies or institutions, and give credit scores using different scoring models.

Americans take credit scores very seriously because lenders use these scores to determine their willingness to repay their debts, which also determines whether banks are willing to lend and the specific terms of the loan.

Title companies

The biggest concern in buying a home is the title. Once a house has title problems, buying and selling are difficult.

Title insurance effectively transfers the risk, the purpose is to ensure that the title is absolutely clear, but also to ensure the compensation after the title accident, including all the legal costs required to regain the title ownership, with the title insurance, home buyers can rest easy.

Because of the intervention of professional institutions, in the U.S., generally there will not be a situation where a house is sold twice and the title is unclear.

Insurance company

If purchased in cash, the home insurance is not legally required, but it is recommended to ensure that assets are not damaged and accidents are covered.

If it is a loan to buy a house, the bank requires you to buy home insurance, otherwise it does not provide loans.

When purchasing homeowner's insurance, tell the insurance company whether the house is rented or owner-occupied, and if it is owner-occupied, the insurance company will add insurance to the private property in the house.

There are also some types of insurance that will pay for accidents that happen to tenants indoors, or if the family pet bites someone, please consult your insurance company for details.