Purchasing a property from another person in the United States involves several key steps. First, identify the desired property through platforms like real estate agents, online listings, or direct contact with the seller. Next, conduct a thorough inspection to assess the property’s condition, and negotiate terms such as price, closing timeline, and contingencies (e.g., financing or inspection requirements). Secure pre-approval for a mortgage if financing is needed, then draft and sign a purchase agreement. Finally, complete the transaction through escrow, paying for title insurance, closing costs, and any earnest money deposit. Legal documentation, including a deed and closing statement, must be finalized during the closing meeting.

The process ensures compliance with legal and financial standards, reducing risks of disputes or financial loss. For example, title insurance, required in 49 states, protects against historical ownership issues or liens, with the American Title Association reporting that 1 in 3 title searches reveals defects. Financing through a mortgage, as noted by the Federal Housing Finance Agency, typically covers 80-95% of the purchase price, with the buyer responsible for the remaining 5-20% as a down payment. Contingencies like inspection clauses, supported by the National Association of Realtors (NAR), prevent buyers from purchasing properties with hidden flaws, as 34% of transactions in 2022 involved such contingencies. Legal compliance is critical; failure to follow state-specific closing procedures can lead to invalid transactions or tax liabilities, as seen in a 2021 study by the National Conveyors Association, which found 12% of purchase agreements had unresolved legal issues. These steps collectively safeguard buyer and seller interests while facilitating efficient property transfers.