Which action must occur first when a buyer exchanges money for clear title?

In a real estate transaction, the first action that must occur when a buyer exchanges money for clear title is the process of offer and acceptance. This foundational step establishes the terms agreed upon by both the buyer and the seller. Offer and acceptance create a legally binding contract that outlines the expectations and obligations of both parties. Without this initial agreement, any further actions, such as counteroffers or financing arrangements, cannot take place.

Following offer and acceptance, subsequent steps like selecting a title company, clearing financing, and potentially negotiating counteroffers can unfold. However, these actions are contingent upon having a mutual agreement in place first. Therefore, understanding the significance of offer and acceptance is crucial in the context of real estate transactions.