In a real estate transaction, what does the term 'buyer' refer to?

The term 'buyer' in a real estate transaction specifically refers to the individual or entity that is acquiring property. This role encompasses anyone who is entering into a purchase agreement to obtain ownership of a real estate asset. Buyers may vary from first-time home purchasers to investors looking to expand their portfolios.

Understanding this definition is crucial because it clarifies the responsibilities and rights that come with the role. The buyer typically has the right to conduct inspections, negotiate terms, and fulfill conditions outlined in the purchase agreement. This understanding is essential when navigating the complexities of real estate transactions, as it affects how buyers interact with sellers, agents, and financing institutions throughout the process.

In contrast, the seller is the party looking to transfer the ownership of the property, while a financial institution provides funding or mortgages to buyers but does not hold the role of a buyer themselves. A real estate agent represents either the seller or the buyer but is not defined as a 'buyer' in the transaction. Knowing these distinctions supports a clear comprehension of the various roles in real estate dealings.