Realtor Foundations: Roles, Responsibilities, and Daily Workflow

New course

12 pages

All courses > Professional courses > Realtor ::

People in a Real Estate Deal: Who Does What and When

Capítulo 2

Estimated reading time: 12 minutes

+ Exercise

A real estate transaction is a coordinated project with multiple specialists. Each person has a different incentive (what they want most), a different set of documents, and a different “window” when they become most active. As a Realtor, your job is often to keep the handoffs clean: the right information to the right party at the right time.

Responsibility Cards (Role-by-Role)

Buyer (Purchaser)

Incentive: Buy the right home on acceptable terms, minimize risk, and control total monthly cost.

Primary duties: Define needs and budget; provide financial documentation to lender; review disclosures; make decisions on offer terms, inspection requests, and repair credits; arrange insurance; complete final walk-through; bring funds to close (or confirm wire).
Typical documents they touch: Purchase agreement/offer; counteroffers/addenda; lender application and disclosures; inspection report; repair request/response; insurance binder; closing disclosure; final settlement statement; HOA documents (if applicable).
When you interact: Pre-offer strategy; offer drafting; inspection decision-making; appraisal outcomes; loan conditions; final walk-through; closing day logistics.
Common friction points: “Sticker shock” on monthly payment; misunderstanding contingencies and deadlines; emotional reactions to inspection findings; delays providing lender documents; confusion about what is negotiable.

Seller

Incentive: Net the most money with acceptable certainty and timing, while minimizing disruption and liability.

Primary duties: Prepare property for market; disclose known issues; approve listing terms; review offers; negotiate repairs/credits; keep property accessible for showings/inspections/appraisal; maintain condition through closing; move out per contract.
Typical documents they touch: Listing agreement; seller disclosures; purchase agreement and addenda; repair agreements; HOA documents; payoff authorization; settlement statement.
When you interact: Pricing and prep decisions; offer review; inspection negotiations; appraisal issues; closing timeline and move-out coordination.
Common friction points: Overpricing expectations; reluctance to disclose; pushback on repairs; occupancy/move-out timing; misunderstanding net proceeds (payoffs, fees, prorations).

Listing Agent (Seller’s Agent)

Incentive: Sell the property on terms that satisfy the seller, reduce fall-through risk, and protect the seller’s position.

Primary duties: Market the property; manage showings; collect and present offers; negotiate; coordinate seller-side timelines; provide disclosures/HOA docs; manage inspection and appraisal access; communicate status to all parties.
Typical documents they touch: MLS input sheets; seller disclosures; purchase agreement/counters; inspection responses; appraisal scheduling confirmations; escrow/title instructions (varies by state); repair invoices/receipts (if provided).
When you interact: Before offer (questions, comps context, disclosures); during negotiation; inspection scheduling and repair negotiations; appraisal access; closing logistics (keys, possession).
Common friction points: Slow disclosure delivery; unclear showing/inspection access; “multiple offer” communication issues; disagreements on repair scope; last-minute condition changes.

Buyer’s Agent

Incentive: Help the buyer secure the home with manageable risk, clean timelines, and a smooth closing.

Continue in our app.

You can listen to the audiobook with the screen off, receive a free certificate for this course, and also have access to 5,000 other free online courses.

Or continue reading below...

Download the app

Primary duties: Draft offer and addenda; explain deadlines; coordinate inspections and quotes; manage negotiation items; track loan and title milestones; prepare buyer for closing costs and logistics; document communications.
Typical documents they touch: Offer package; contingency notices; inspection request/repair addenda; appraisal dispute support (comps); closing disclosure review checklist; final walk-through notes.
When you interact: Daily throughout the transaction—especially offer drafting, inspection period, appraisal, and pre-closing.
Common friction points: Misaligned expectations on concessions; missed deadlines; unclear repair language; over-reliance on verbal agreements; coordinating multiple vendors under time pressure.

Broker (Managing Broker / Brokerage)

Incentive: Compliance, risk management, and supporting agents to complete transactions correctly.

Primary duties: Provide oversight; ensure required forms and disclosures are used; review contracts (as required by brokerage policy); handle disputes/complaints escalation; maintain transaction files.
Typical documents they touch: Brokerage-required disclosures; file checklists; compliance forms; commission instructions; transaction audit items.
When you interact: At contract acceptance (file setup); when unusual clauses appear; when conflict arises; before closing (file completeness).
Common friction points: Late file submission; missing signatures/initials; unauthorized practice concerns; unclear commission instructions; escalation delays if you wait too long to ask for help.

Lender / Loan Officer

Incentive: Close an approvable loan on time while meeting underwriting and regulatory requirements.

Primary duties: Pre-approval; lock rate (if applicable); collect borrower documentation; order appraisal; coordinate underwriting; issue loan approval/clear-to-close; provide closing disclosure; fund the loan.
Typical documents they touch: Loan estimate; disclosures; verification documents (income/assets); appraisal order; underwriting conditions list; closing disclosure; funding authorization.
When you interact: Before offer (pre-approval strength); immediately after acceptance (loan submission); during appraisal; when conditions arise; pre-closing (clear-to-close and funding timing).
Common friction points: Buyer delays providing documents; appraisal value shortfall; last-minute credit/income changes; confusion about “cash to close”; rate lock timing; lender communication gaps on conditions.

Escrow Officer / Closing Agent (or Settlement Agent)

Incentive: Neutral, accurate closing: collect documents and funds, follow instructions, and disburse correctly.

Primary duties: Open escrow; hold earnest money; coordinate signing; prepare settlement statement; collect payoff demands; manage prorations; receive lender funds; disburse proceeds; record documents (or coordinate recording).
Typical documents they touch: Escrow instructions; settlement statement/closing statement; payoff demands; deed and recording package; wire instructions; signing package.
When you interact: Right after contract (open escrow); during contingency removals (if required notices); as closing approaches (signing schedule, funds, prorations); day-of closing (recording and confirmation).
Common friction points: Wire fraud concerns and verification; last-minute fee changes; missing payoff info; scheduling signings; misunderstanding “close” vs “fund” vs “record” (state-specific).

Title Company

Incentive: Deliver clear title (or identify issues) and issue title insurance policies.

Primary duties: Title search; provide preliminary title report/commitment; identify liens/encumbrances; coordinate curative work; issue owner’s and lender’s title policies; record documents (in many areas, coordinated with closing).
Typical documents they touch: Preliminary title report/commitment; exceptions list; lien releases; easements/CC&Rs; title insurance policies.
When you interact: Early (review prelim/commitment); mid-transaction (resolve title issues); pre-close (confirm requirements satisfied).
Common friction points: Old liens; boundary/easement surprises; name mismatches; unreleased mortgages; HOA liens; delays obtaining releases or probate/trust documentation.

Attorney (Where Applicable)

Incentive: Protect the client’s legal position and reduce liability through contract review and legal advice.

Primary duties: Review/prepare contract language (state-dependent); negotiate legal terms; advise on title defects, survey issues, and disputes; sometimes manage closing.
Typical documents they touch: Contract and addenda; attorney review letters; title objections and curative demands; settlement statement review; legal notices.
When you interact: At contract drafting/acceptance (attorney review periods); when title or boundary issues arise; when disputes escalate beyond normal negotiation.
Common friction points: Delays during attorney review; “legal vs practical” negotiation tension; unclear scope (what attorney handles vs agent); clients expecting legal advice from agent.

Home Inspector

Incentive: Provide an objective assessment of visible/accessible conditions and safety concerns.

Primary duties: Inspect major systems; document findings; explain severity and maintenance vs defect; recommend specialist follow-up when needed.
Typical documents they touch: Inspection agreement; inspection report; photo documentation; add-on reports (radon, sewer scope, pest—varies).
When you interact: Immediately after acceptance (schedule); at inspection (access, utilities on); after report (repair strategy and negotiation).
Common friction points: Buyer misreads report as “must fix everything”; seller refuses certain repairs; access issues (attic, crawlspace); utilities off; inspector scope limitations.

Appraiser

Incentive: Provide an independent opinion of value to support lending risk decisions.

Primary duties: Inspect property; analyze comparable sales; produce appraisal report; note required repairs for loan program (if any).
Typical documents they touch: Appraisal report; comparable sales grid; repair/condition requirements; reconsideration of value request (if submitted).
When you interact: During scheduling and access; when value comes in low; when repairs are required for loan approval.
Common friction points: Low appraisal; missing comps in unique areas; condition issues flagged; delays in scheduling; parties trying to “pressure” appraiser (avoid).

Insurance Agent (Homeowners / Hazard Insurance)

Incentive: Bind a policy that meets lender requirements and accurately prices risk.

Primary duties: Quote coverage; verify property details; bind policy; provide proof of insurance to lender; coordinate effective date at closing.
Typical documents they touch: Insurance quote; declarations page; binder; proof of paid premium (if required); claims history reports (sometimes requested).
When you interact: Early enough to avoid surprises (ideally soon after acceptance); again before closing to confirm binder and payment.
Common friction points: High premiums; coverage denial (roof age, wildfire/flood zones); confusion about escrowed premiums; last-minute lender requirements (deductible limits, endorsements).

HOA / Condo Management (If Applicable)

Incentive: Enforce community rules, collect dues, and manage shared property; ensure transfer requirements are met.

Primary duties: Provide resale package/documents; confirm dues and special assessments; handle transfer fees; provide rules, budgets, and meeting minutes; sometimes approve buyers or move-in logistics.
Typical documents they touch: CC&Rs; bylaws; rules/regulations; budget; reserve study (if available); resale disclosure package; estoppel letter/status letter; paid assessment statements.
When you interact: Early after acceptance (order docs); during buyer review period; pre-close (confirm fees and prorations); move-in scheduling (elevators, parking).
Common friction points: Slow document delivery; unexpected special assessments; rental restrictions; insurance gaps (master policy issues); lender condo approval problems.

Contractors / Trades (Plumber, Electrician, Roofer, etc.)

Incentive: Get paid for defined scope; minimize callbacks and liability; schedule efficiently.

Primary duties: Provide bids/estimates; perform repairs; produce invoices/receipts; sometimes provide permits or warranty info.
Typical documents they touch: Written estimates; scope-of-work; invoices; receipts; permit documentation (if applicable); warranty paperwork.
When you interact: After inspection (bids for negotiation); during repair period (access and scheduling); before closing (proof of completion).
Common friction points: Vague scopes (“repair as needed”); scheduling delays; access limitations; disagreements on quality; permit requirements discovered late; payment timing disputes.

Photographer / Videographer

Incentive: Deliver marketable media on schedule with minimal reshoots.

Primary duties: Capture photos/video; edit; deliver files; sometimes create floor plans, drone shots, or 3D tours.
Typical documents they touch: Media licensing agreement; property access instructions; delivery links; model release (rare in residential, but possible).
When you interact: Pre-listing (schedule and prep checklist); day-of shoot (access, staging readiness); post-shoot (selecting hero images, revisions).
Common friction points: Home not ready; weather/light issues; turnaround time; mismatched expectations on editing; access/lockbox problems.

Stager

Incentive: Improve presentation to support faster sale and stronger offers; protect inventory and get paid on time.

Primary duties: Consult on decluttering and layout; deliver/install furniture and decor; coordinate removal; sometimes provide minor cosmetic recommendations.
Typical documents they touch: Staging proposal; rental agreement; inventory list; damage/insurance terms; schedule confirmations.
When you interact: Pre-listing consultation; installation before photography; maintenance during listing; removal after closing/possession.
Common friction points: Budget vs expectations; timing conflicts with painters/cleaners; damage to staging items; seller living-in-staged-home challenges.

Practical Step-by-Step: When Each Role Typically Activates

Transaction Moment	Most Active People	What You’re Coordinating
Pre-offer readiness	Buyer, lender/loan officer, buyer’s agent	Pre-approval strength, budget guardrails, offer terms strategy
Listing preparation (seller side)	Seller, listing agent, photographer, stager, contractors	Prep timeline, media schedule, repair/refresh decisions
Offer to acceptance	Buyer, seller, both agents, sometimes attorney/broker	Contract terms, counters, deadlines, disclosures delivery plan
Escrow/title opened	Escrow/closing agent, title company, both agents	Earnest money deposit, prelim/commitment order, contact sheet
Inspection period	Inspector, buyer, buyer’s agent, listing agent, contractors	Scheduling access, report review, bids, repair request drafting
Appraisal & underwriting	Lender, appraiser, buyer, both agents	Access, comps support, condition items, underwriting conditions
HOA document review (if applicable)	HOA/management, buyer, both agents, lender	Ordering package, review deadlines, lender condo requirements
Pre-close	Escrow/closing agent, lender, title, insurance agent, both agents	Binder delivered, closing disclosure timing, signing schedule, wire verification
Final walk-through & closing	Buyer, buyer’s agent, listing agent, escrow/closing agent	Property condition confirmation, possession timing, keys, recording/funding confirmation

Common Friction Points and How to Reduce Them (Quick Playbook)

1) Missing or late documents

Where it shows up: lender conditions, HOA resale package, title curative items.
Agent action: At acceptance, send a “document clock” email listing due dates and who owns each item (buyer, seller, HOA, lender). Ask for a single point of contact at each company.

2) Vague repair language

Where it shows up: inspection negotiations and contractor scope.
Agent action: Convert “fix leak” into measurable scope: location, standard (licensed plumber), documentation (paid invoice), and deadline. If credit is used instead, specify amount and how it appears on the settlement statement.

3) Appraisal shortfall

Where it shows up: value below contract price.
Agent action: Confirm contract options (price reduction, buyer cash gap, renegotiation, reconsideration of value). Provide factual comps and upgrades list through the lender’s allowed channel; avoid direct pressure on the appraiser.

4) Wire and closing-day confusion

Where it shows up: “Are we closed yet?” and wire fraud risk.
Agent action: Teach the vocabulary early: signing vs funding vs recording (varies by state). Require verbal verification of wire instructions using a known phone number (not an email reply).

Communication Matrix (Who to Contact for What)

Question / Issue	Primary Contact	Secondary Contact	What to Provide (So They Can Act)
Financing status, rate lock, underwriting conditions, clear-to-close timing	Lender / loan officer	Buyer (for documents), escrow (for fee questions)	Contract, deadlines, buyer contact info, requested condition list, appraisal status
Appraisal scheduling, low value, repair requirements for loan	Lender / appraisal desk (per lender process)	Listing agent (access), buyer (options)	Access instructions, relevant comps (factual), list of upgrades, contract price and terms
Title issues (liens, easements, name mismatch, unreleased mortgage)	Title officer	Escrow/closing agent, attorney (if complex)	Prelim/commitment item number, supporting docs (payoff, releases), seller legal name/entity docs
Escrow/closing fees, prorations, signing appointment, recording/funding confirmation	Escrow officer / closing agent	Lender (CD timing), title (recording requirements)	Preferred signing times, ID requirements, contact sheet, contract close date, possession terms
Repairs after inspection (negotiation, scope, invoices)	Listing agent (for seller response) or buyer’s agent (for buyer strategy)	Contractor/trade, inspector (clarifications)	Specific repair request language, report page references, bids/estimates, deadlines in contract
Scheduling access: inspection, appraisal, re-inspection, contractor entry	Listing agent (controls access on seller side)	Seller/occupant, showing service/lockbox support	Preferred windows, who will attend, utilities status, special instructions (pets, alarms)
Insurance questions: premium, coverage, binder, effective date	Insurance agent	Lender (coverage requirements)	Property address, year/roof age (if known), loan amount, deductible requirements, closing date
HOA docs, dues, special assessments, transfer fees, move-in rules	HOA/condo management	Listing agent (ordering), escrow (fee collection)	Property address/unit, seller authorization (if needed), requested package type, deadline for review
Legal interpretation or dispute escalation (state-dependent)	Attorney (if involved/required)	Managing broker (process guidance)	Signed contract/addenda, timeline of communications, specific clause in question, desired outcome

Now answer the exercise about the content:

During the inspection period, what is the Realtor’s best practice for reducing disputes caused by vague repair requests?

You are right! Congratulations, now go to the next page

You missed! Try again.

Clear, measurable repair language reduces misunderstandings. Specify scope (location/standard), who performs it, proof (paid invoice), and timing, or state an exact credit and how it will show on the settlement statement.