Table of Contents
- Why Compliance in Real Estate Transactions Is Essential
- 6 Steps for Transaction Coordination Compliance
- AgentUp: Full Transaction Coordination Compliance
Real estate transaction coordination must adhere to federal, state, and local compliance requirements.
From contract review to closing, strict adherence to federal, state, and local regulations is essential to prevent costly mistakes, legal disputes, fines, and reputational damage.
This article walks you through how to do a compliance check as a real estate transaction coordinator in 6 critical steps.
First, let’s understand why compliance in real estate transactions is crucial.
Why Compliance in Real Estate Transactions Is Essential✅
Compliance in real estate transaction coordination is essential for protecting all parties, ensuring legal integrity, and maintaining the trust that underpins successful deals.
When agents and brokers follow compliance standards, they help prevent fraud, misrepresentation, and costly legal issues.
Compliance also ensures that every transaction is transparent, fair, and conducted in accordance with federal, state, and local laws, thereby safeguarding both clients and professionals.
Some of the key compliance issues in real estate transaction coordination include the following:
| Accurate and Complete Documentation: | All paperwork must be thorough, up-to-date, and error-free to avoid delays or disputes. |
| Local Jurisdiction: | Agents must verify and comply with all applicable local, state, and federal regulations governing the property. |
| Environmental Compliance: | Properties must meet environmental standards, including inspections for hazardous materials like asbestos or lead-based paint. |
| Risk Management: | Insurance coverage, indemnification agreements, and contingency plans should be in place to minimize liability. |
| Tenant Records: | Review tenant complaints, maintenance requests, and legal violations for rental properties. |
| Real Estate Settlement Procedures Act (RESPA): | Transactions must comply with RESPA, which prohibits kickbacks and referral fees and governs the settlement process. |
| Fair Housing Laws: | Ensure that all practices comply with fair housing regulations to prevent discrimination. |
| Zoning and Land Use: | Confirm the property’s zoning classification and permitted uses, and check for any pending legal disputes or code violations. |
By addressing these compliance issues, real estate professionals protect their clients, reduce legal risks, and uphold the legality of every transaction.
Compliance Requirements Vary in Each State
Real estate compliance varies significantly from state to state.
While federal laws set broad standards, each state enacts its own regulations governing licensing, disclosures, agency relationships, and transaction procedures.
This means that agents and brokers must be familiar with—and adhere to—the specific requirements of every state where they operate, as failing to do so can result in legal penalties, fines, or the loss of their license.
The following compliance requirements differ state-by-state:
- Agency Relationships: Some states prohibit dual agency, while others allow it with written consent or specific disclosures
- Disclosure Laws: States differ in what information must be disclosed to buyers, such as property defects or environmental hazards, and also in the required forms and paperwork
- Fair Housing Regulations: While federal law prohibits discrimination, states may have additional protections and enforcement mechanisms
- Zoning and Land Use: Local and state zoning laws dictate how property can be used, with significant variation across jurisdictions
- Transaction Documentation: The required forms, disclosures, and closing procedures can differ, affecting how transactions are managed
Understanding these differences is crucial for ensuring compliance and protecting clients and other parties in every transaction.
Next, let’s review best practices and the necessary steps for compliance in real estate transaction coordination.
6 Steps for Transaction Coordination Compliance📝
Ensuring compliance in real estate transaction coordination requires a systematic approach that covers every critical step from contract review to closing.
Each phase must be managed with precision, attention to detail, and strict adherence to legal and regulatory requirements.
Below are the key steps for ensuring compliant real estate transaction coordination.
1. Contract Review
Contract review is the foundation of compliance, ensuring all terms are clear, legally sound, and agreed upon by all parties.
Above all, the agents and transaction coordinators must verify that all contingencies, deadlines, and obligations are accurately documented and understood.
- Sales Contract: Review the purchase agreement for completeness and accuracy
- Collect Signatures: Confirm all parties have signed and dated the contract
- Document Compiling: Track and document all contingencies and deadlines
- Legal Review: Ensure legal counsel reviews the contract
- Party Copies: Distribute copies of the executed contract to all relevant parties
2. Disclosure Paperwork
Proper disclosure is crucial for protecting both buyers and sellers and preventing legal disputes.
Agents and their transaction coordinators must collect, verify, and file all required disclosures in accordance with local and state regulations.
- Seller’s Disclosure: Collect all property disclosure forms from the seller
- Verify Signatures & Initials: Verify that disclosures are signed, initialed, and dated
- Document Sharing: Ensure all disclosures are delivered to the buyer
- Record Keeping: Maintain copies of all disclosure documents in the transaction file
- Regulatory Review: Confirm compliance with state-specific disclosure requirements
Market Leading
Real Estate Transaction Coordinators
Hand off your transactions, media, and marketing to a real estate TC.
3. Due Diligence
The due diligence phase involves a thorough investigation of the property and transaction to uncover any potential risks or liabilities.
Specifically, this step is critical for protecting all parties and ensuring a smooth closing.
- Inspection Coordination: Schedule inspections (structural, mechanical, environmental)
- Title Paperwork: Collect and review financial records, surveys, and legal descriptions
- Environmental Rules: Obtain environmental reports (e.g., Phase I ESA)
- Zoning: Review zoning regulations and land use restrictions
- Deadlines: Track and manage all due diligence deadlines
4. Agency Confirmation
Agency relationships must be clearly defined and documented to avoid conflicts of interest and ensure compliance with state laws.
Additionally, those managing the real estate transaction coordination process need to ensure the following:
- Verify Agency: Confirm agency relationships (buyer’s agent, seller’s agent, dual agency)
- Disclosure Forms: Collect and file agency disclosure forms
- Agency Duties: Ensure all parties understand their agency roles and responsibilities
5. Money Handling
Proper handling of funds is essential for ensuring compliance and protecting clients.
All financial transactions must be documented and handled in accordance with applicable federal and state laws and regulations.
Real estate transactions typically require the following money handling compliance concerns:
- Earnest Money: Collect and verify earnest money deposits
- Trust Accounts: Ensure funds are held in an escrow account
- Bookkeeping: Track all financial transactions and maintain detailed records
- Wire Set Up: Coordinate money wire instructions and confirm delivery timelines
- Verify Closing: Verify clear-to-close status with the lender
6. Adhering to Required Timing
Each step in the transaction process has specific timing requirements that must be strictly adhered to to ensure compliance and avoid delays.
The following are some of the primary timing compliance issues in real estate transaction coordination:
- Meeting Deadlines: Track all deadlines for contingencies, inspections, and disclosures
- Confirming Milestones: Confirm closing date and time with all parties
- Meeting Schedules: Schedule final walkthrough and coordinate closing appointments
- Final Document Check: Ensure all documents are signed and delivered before closing
By following these steps and maintaining thorough records, brokers, agents, and transaction coordinators can ensure compliance at every stage of the real estate transaction, protecting clients and avoiding delays, fines, and even lawsuits.
However, the good news is that there’s an easy way to achieve compliance in all your real estate transactions. Let us share it with you.
Market Leading
Real Estate Transaction Coordinators
Hand off your transactions, media, and marketing to a real estate TC.
AgentUp: Full Transaction Coordination Compliance 🎯
Partner with AgentUp for full compliance on every property sale.
As a premier transaction coordination service, AgentUp delivers unwavering compliance and precise oversight for every transaction.
In fact, we’re the trusted partner for agents and brokers across these markets:
- Virginia
- Maryland
- Washington
- Oregon
- Florida
Our full-compliance promise ensures that every file is reviewed for accuracy and legal completeness at every step, guaranteeing that your closings consistently meet broker and regulatory standards.
Enjoy peace of mind knowing that every detail—critical dates, signatures, disclosures, and post-closing tasks—is managed with precision, protecting your clients and your business.
Moreover, AgentUp keeps real estate transaction coordination compliance affordable:
- Transaction Coordination – from $399 per file
- Listing Coordination – from $249 per listing
Right now, we’re offering $50 off your first transaction!
While we’re a leader in real estate transaction coordination services, we also offer outstanding real estate marketing solutions.
Real Estate Marketing Support With AgentUp
With over a decade of experience developing highly effective marketing solutions, AgentUp offers tools to help you connect with buyers and showcase your properties in truly distinctive ways.
Experience our innovative marketing resources designed to expand the reach of your listings and accelerate the pace of your sales:
- Virtual tours
- Property websites
- Home flyers
- House portraits
- AI real estate photo editing
- And virtual staging
With transaction coordination services and marketing support, AgentUp is your partner for real estate success.
Call and speak with an AgentUp TC at (888) 982-4368 or schedule a complimentary TC consultation.
We hope this article has explained how to perform a compliance check in all your real estate transaction coordination tasks. Before you go, check out these additional related posts:
- Security & Data Privacy in Transaction Coordination: Safeguarding Client Info
- Why You Don’t Want to Use AI As Your Real Estate Transaction Coordinator
- From Offer to Keys: A TC Coordinator’s In Investor Property Flips
- The Cost of Not Hiring a Real Estate Transaction Coordinator
- How a Real Estate Transaction Coordinator Can Improve Client Satisfaction and Boost Referrals
