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The cast of characters and the deal flow

Time to complete: 90 minutes (read once, then re-read with the glossary open) Prerequisite: Foundation Lesson 1 Goal: You will know every person involved in a real estate deal, what they do, and how a transaction moves from "house is for sale" to "house has new owners and money has been moved." This is the lesson that separates a REVA who can have a real conversation with a title company from one who has to ask their agent what every email means.

Part 1 — The cast of characters

A real estate transaction can have 12+ different people working on it. You need to know every one of them on sight, by role and by what they actually do. We'll go through them in roughly the order they appear.

The principals (the people whose money is moving)

Seller — The person or entity who currently owns the property and wants to sell it. May be an individual, a married couple, an estate, a trust, a bank (in a foreclosure), a corporation, or a developer. The seller signs the listing agreement, the disclosures, the purchase agreement, and the deed at closing.

Buyer — The person or entity acquiring the property. Pays the earnest money, signs the purchase agreement, signs the loan documents, signs the closing documents, and walks away with the keys.

These two are the only people who matter at the deepest level. Every other person in the transaction works for one of them, or services their deal.

The agents (post-NAR Settlement, this is where rules changed — see Lesson 3)

Listing Agent (also called the Seller's Agent or Seller's Representative) — The licensed real estate agent hired by the seller. They sign a Listing Agreement with the seller. Their job is to:

Buyer's Agent (also called Buyer's Representative or Selling Agent — confusingly, the Selling Agent is the buyer's side, because they're "selling" the property to the buyer) — The licensed agent hired by the buyer. Their job is to:

2026 reality: Since the NAR Settlement took effect in August 2024, buyer's agents must have a signed Buyer Representation Agreement (also called a Buyer's Agency Agreement, BBA, or BRA) before showing a buyer any home. The agreement specifies how the buyer's agent gets paid. This was not the case before. Memorize this.

Dual Agent — A single licensed agent representing both the buyer and the seller in the same transaction. Allowed in Minnesota with full written disclosure and consent from both parties. The agent's duties are reduced (they cannot advocate strongly for either side because both are clients). Most agents avoid this and many brokerages don't allow it.

Designated Agent / Designated Representative — A workaround for dual agency: two different agents from the same brokerage represent the buyer and seller separately. The brokerage is technically representing both, but each agent is "designated" to one party. Common in Minnesota. Requires written disclosure.

Sub-agent — A buyer's agent who is technically working for the seller (a relic of pre-1990s real estate). Functionally extinct in 2026. If you hear it, mentally translate to "this is old".

Broker / Managing Broker / Broker of Record — The licensed entity that holds the agent's license and supervises them. Every real estate transaction is technically between brokerages, not between agents. The broker has fiduciary responsibility, signs off on big decisions, and gets named in lawsuits. In Minnesota, every agent must be associated with a licensed real estate broker.

The money people

Lender / Mortgage Lender / Mortgage Bank — The bank or financial institution lending the buyer money to buy the house. Could be a big bank (Wells Fargo, Chase, US Bank — US Bank is HQ'd in Minneapolis, you'll see them constantly), a mortgage-only company (Rocket, loanDepot, Bay Equity), a credit union, or a local bank.

Loan Officer (LO) — The person at the lender who works directly with the buyer. Takes the application, collects documents, requests the appraisal, gets the loan to underwriting. The buyer's agent and the loan officer talk constantly during a transaction.

Mortgage Broker — Different from a loan officer. A mortgage broker doesn't lend money themselves; they shop the buyer's loan to multiple lenders to find the best terms. They're paid by the lender that wins the loan.

Underwriter — The person at the lender who evaluates whether the loan should be approved. The buyer never talks to them. The loan officer interfaces. Underwriters request additional documents (a "conditions list") that delay closings constantly. You will become familiar with the phrase "underwriter conditions" and you will hate it.

Appraiser — A licensed third party hired by the lender to determine whether the property is worth what the buyer is paying. The appraiser has no skin in the deal. They walk the property, compare it to recent sales of similar homes ("comps"), and write a report. The lender will not lend more than the appraised value. If the appraisal comes in low, the deal is in trouble. (More on this below.)

Title Company / Closing Agent / Settlement Agent / Escrow Officer — A neutral third party that handles the closing. Their job:

In Minnesota, title companies typically run the closing. (In some states like New York and Illinois, attorneys do this.) Common Minnesota title companies you'll see: Old Republic Title, Stewart Title, Title Smart, Watermark Title, Edina Realty Title, North American Title.

The inspection people

Home Inspector — Hired by the buyer (almost always — buyer agents will recommend one). A licensed inspector who walks the property and produces a 30–80 page report on the condition of the roof, foundation, electrical, plumbing, HVAC, appliances, etc. The inspection happens during the inspection period (usually 5–10 days after the offer is accepted). Based on the report, the buyer can request repairs, walk away, or proceed.

Specialty Inspectors — When the home inspector finds something concerning, the buyer may hire specialists: a roofer, a structural engineer, a sewer scope inspector, a radon tester, a mold tester, a pest/termite inspector, a chimney inspector. These are typically paid by the buyer at their own expense.

Surveyor — Maps the property's boundary lines. Often required by the lender or title company on certain properties. Less common on standard urban/suburban Minnesota homes; more common on rural land or if there's a boundary dispute.

The legal and government people

Real Estate Attorney — Optional in Minnesota (mandatory in NY, NJ, IL, etc.). Some Minnesota buyers and sellers hire one anyway, especially on complex deals. Reviews contracts, advises on disclosures, attends closing if requested.

County Recorder / Registrar of Titles — The government office where the deed is recorded after closing. In Minnesota, every county has one. The deed isn't legally binding against third parties until it's recorded.

Assessor — The county employee who determines the property's assessed value for tax purposes. This is not the same as the appraised value (lender) or the listed price (market). All three values usually differ.

The team support layer (this is you)

Transaction Coordinator (TC) — Manages the paperwork from contract to close. Tracks deadlines, gets disclosures signed, communicates with title and lender, ensures compliance. Some brokerages have in-house TCs; some use third-party TC services; many use a REVA in this role. A GVA at a small team is often functioning as the TC.

Listing Coordinator — Owns the launch of every new listing. Coordinates photography, staging, MLS input, sign installation, marketing. Often a GVA.

Marketing Coordinator — Owns the agent's social media, listing marketing, email newsletters, paid ads. Often a GVA or a specialist VA.

Inside Sales Agent (ISA) — Calls and qualifies leads, sets appointments for the agent. Works the database, the new lead inflow, and the long-tail follow-up. Often a VA. One of our three tracks.

Outside Sales Agent (OSA) / Showing Agent — A licensed agent (so usually not a VA — this requires a US license) who handles showings and buyer consultations on behalf of a busy lead agent. Mentioned for completeness — you will not be one.

Operations Manager / Director of Operations — The senior role above the GVA/EVA/ISA. Manages the back office, hires the VAs, runs the team's systems. This is what a top-performing EVA grows into in 18–36 months.

Part 2 — The deal: from listing to closing day

Here's how a residential real estate transaction actually moves. This is the clean version. Real deals have potholes — bad inspections, low appraisals, financing falling apart — but the skeleton is always the same.

Stage 1 — Pre-listing (seller side)

  1. Seller decides to sell.
  2. Seller interviews 1–3 listing agents. Each gives a Comparative Market Analysis (CMA) with a suggested list price.
  3. Seller chooses an agent and signs a Listing Agreement — usually 6 months, exclusive right to sell, specifies commission and obligations.
  4. Pre-listing prep: the listing agent (and their VA) coordinates photos, staging, repairs, cleaning, sign install, MLS prep.
  5. Seller completes Seller Disclosures — what they know about the property's condition. In Minnesota, this is the Seller's Property Disclosure Statement. Disclosing material defects is a legal requirement.

Stage 2 — On the market

  1. Listing goes live on the MLS (Northstar MLS in Minnesota).
  2. Listing syndicates to Zillow, Realtor.com, Redfin, etc.
  3. Marketing begins: listing email blasts, social media, open houses, broker open houses.
  4. Buyer's agents schedule showings — through ShowingTime (the most common showing-scheduling tool in MN), through the listing agent's office, or directly.
  5. Buyers tour the property with their agent.

Stage 3 — Offer and negotiation

  1. A buyer wants to make an offer. Their buyer's agent writes a Purchase Agreement — in Minnesota, almost always the Minnesota Standard Residential Purchase Agreement form (a state-bar-approved form used by virtually every brokerage). Includes:
  1. Buyer's agent submits the offer to the listing agent.
  2. Listing agent presents to seller. Seller accepts, rejects, or counters. Counteroffer goes back. This can ping-pong several times.
  3. Once both parties sign, the Purchase Agreement is fully executed (sometimes called "ratified" or "mutually executed"). The deal is officially "in contract" or "pending."

Stage 4 — The pending period (this is where 70% of REVA work happens)

This is the period between offer acceptance and closing. In Minnesota it's typically 30–45 days. Here's what's happening, in rough parallel:

  1. Earnest money is delivered (usually within 1–3 business days of contract execution) — held in the listing brokerage's trust account or by the title company.
  2. Title work is opened with the title company. Title search begins.
  3. Loan application — the buyer formally applies for the loan with their lender. They've usually been pre-approved before making the offer, but now the actual loan process starts.
  4. Inspection — usually within the first 5–10 days. The inspection report comes back. The buyer's agent and buyer review it. Three options:
  1. Appraisal — ordered by the lender. The appraiser visits the property. Report comes back in 1–2 weeks. Three outcomes:
  1. Loan processing and underwriting — the buyer is gathering documents, the lender is requesting more documents, the underwriter is asking conditions. This is messy. The TC's job is to keep this on track.
  2. Title issues — sometimes the title search uncovers problems: an unreleased lien, a missing heir on a previous deed, a boundary problem. These have to be cured before closing.
  3. Final walk-through — usually 1–3 days before closing. Buyer and buyer's agent walk the property to confirm it's in the same condition as when they wrote the offer (and that any agreed-upon repairs were completed).

Stage 5 — Closing

  1. Clear to close (CTC) — the lender announces the loan is fully approved and ready to fund. This is the moment the TC and the agents cheer.
  2. Closing Disclosure (CD) — the buyer must receive this 3 business days before closing by federal law (TRID rule). Lists every dollar in and out.
  3. Closing meeting — buyer, seller, agents, title officer (and sometimes lenders or attorneys) meet at the title company. Or they sign separately if it's a split closing. Buyer signs the loan documents (a stack of 60+ pages). Seller signs the deed. Title disburses funds — pays off the seller's existing mortgage, pays the agents, pays itself, and gives the seller their net proceeds. Buyer gets the keys.
  4. Recording — the title company sends the deed to the county to be recorded. Recording timestamps the buyer as the legal owner against the world.
  5. Done. The transaction is closed. The agent gets their commission a few days later.

Part 3 — Spotlight on the appraisal (the most-misunderstood step)

You will see the word appraisal in 100 emails per month. Here's exactly what it means.

What an appraisal is

A licensed third-party professional opinion of the property's market value, performed at the lender's request. Required for any loan-financed purchase. A cash buyer does not require an appraisal (though they can choose to have one).

How it works

Why it matters

The lender will not lend more than the appraised value times the loan-to-value ratio. If the buyer is putting 20% down on a $400K purchase, they need a $320K loan. If the appraisal comes in at $380K, the lender will only lend 80% of $380K = $304K. The buyer is now $16K short and has to bring more cash, renegotiate, or walk.

The appraisal contingency

A clause in the purchase agreement that says: if the appraisal comes in below the contract price, the buyer can renegotiate or walk away without losing earnest money. In hot seller's markets, buyers sometimes waive this contingency to make their offer more competitive — risky.

Your job as a REVA on appraisal

Part 4 — The contracts you will see constantly

You don't need to be an attorney. You do need to recognize these documents on sight and know roughly what they do.

DocumentPurposeWho signs
Listing AgreementSeller hires the listing agent's brokerage; sets commission and termSeller + listing brokerage
Buyer Representation Agreement (BRA)Buyer hires the buyer's agent's brokerage; sets buyer-side compensationBuyer + buyer's brokerage
Purchase AgreementThe offer-and-acceptance contractBuyer + seller
Counteroffer / AmendmentModifies a purchase agreementWhichever party is countering, plus the other accepting
Seller's Property DisclosureWhat the seller knows about the property's conditionSeller
Disclosures of Agency RepresentationDiscloses the agency relationshipsBuyer or seller, agent
Earnest Money ReceiptConfirms earnest money was receivedBrokerage or title company
Inspection Response / AmendmentBuyer's request for repairs or creditsBuyer + seller
Loan Estimate (LE)Lender's estimate of loan terms; given within 3 days of applicationLender provides; buyer acknowledges
Closing Disclosure (CD)Final loan terms and money flow at closing; given 3 business days before closingLender provides; buyer acknowledges
DeedLegal document transferring ownershipSeller signs at closing
Title CommitmentTitle company's promise to insure title, with conditionsTitle company; reviewed by attorney/agent

Part 5 — The vocabulary you must know cold

Read the [Glossary](Glossary.md) after this lesson. Don't move on until you can define every term in it without looking. Test yourself.

The 30 highest-frequency terms you will hear in your first week:

MLS · Comp · CMA · Pre-approval · Pre-qualification · Earnest money · Contingency · Inspection · Appraisal · Title · Escrow · Closing · Pending · Active · Sold · DOM (days on market) · Listing · Buyer rep agreement · Purchase agreement · Counteroffer · Disclosure · CD (closing disclosure) · LE (loan estimate) · CTC (clear to close) · Underwriting · TC (transaction coordinator) · ISA · GVA · Lockbox · Showing

Self-check before you move on

  1. Name eight different people who can be involved in a real estate transaction. Briefly describe what each does.
  2. Walk through the five stages of a transaction. Use only your memory, then check.
  3. What's the difference between a listing agent and a buyer's agent? What's a designated agent?
  4. What is an appraisal, who orders it, who pays for it, and what happens if it comes in low?
  5. What is earnest money? When is it delivered, and what happens to it if the buyer backs out?
  6. Name three things a Transaction Coordinator does during the pending period.
  7. What is a Buyer Representation Agreement and why is it mandatory in 2026? (If you can't answer this, Lesson 3 is required reading next.)

When you can answer all seven from memory, you are ready for Foundation Lesson 3 — the post-NAR Settlement era.

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