What usually happens after a formal purchase agreement is made?

After a formal purchase agreement is executed, the typical next step is the initiation of the escrow process. During escrow, a third party holds the funds and the property title until all terms of the purchase agreement are met. This process is crucial as it ensures that both the buyer and seller fulfill their obligations before the transaction is finalized. The escrow agent manages the details, including the collection and distribution of funds, title searches, and ensuring all necessary documents are in place.

While some activities, like negotiations or final walkthroughs, may occur during this phase, they are not the immediate next steps following the agreement. The immediate focus is on securing and protecting both parties' interests until the closing of the sale.