What Is a Sale?A sale is a transaction between two or more parties that involves the exchange of tangible or intangible goods, services, or assets for money. In some cases, assets other than cash are paid to a seller. Show
In the financial markets, a sale can also refer to an agreement that a buyer and seller make regarding a financial security, its price, and specific arrangements for its delivery. Regardless of the context, a sale is essentially a contract between a seller of a particular good or service and a buyer who is willing to pay for that good or service. Key Takeaways
What Is a Sale?How a Sale WorksA sale occurs when a seller of goods or services transfers ownership of, and title to, a good or service to a buyer in exchange for a specific amount of money or other specified assets. To complete a sale, both the buyer and the seller must agree to the specific terms of the transaction. These terms can include the price of the good to be sold, the quantity of the good, the method of delivery, and time of delivery. Importantly, the good or service that is being offered must be available to exchange. The seller must have the legal authority to transfer the item or service to the buyer. If one party transfers a good or service to another without receiving compensation in return, the transaction is more likely to be treated as a gift or a donation, particularly from an income tax perspective. Every day, millions of people take part in countless sales transactions across the globe. This creates a constant flow of assets and forms the backbone of the world's economies. Types of Sales
To complete a sale, both the buyer and seller must be deemed competent. The good or service in question must be legally available to buy and the seller must have the authority to transfer the item to the buyer. Both parties must agree on the terms of the sale. Ways to PayWhen people ask the question "What is a sale?" their inquiry may involve the ways to pay. In general, there are three main ways to make the payment of money required in a sales transaction.
Example of a SaleWhen an individual purchases their first home, a sale occurs when the closing documents are signed, money exchanges hands, and the new owner gets the key. However, there are various aspects to such a sale that lead up to that final, legal exchange of money for property, and beyond. These include the would-be buyer's initial contact with a realtor and meeting with a representative at a lending institution to obtain financing in the form of a mortgage. Additional sales can extend from an initial sale process. For example, once a home loan is made to the buyer, the lending institution may then sell that loan to another individual as an investment. What's more, an investment manager could conduct sales by trading bundles of mortgages, called mortgage-backed securities, and other kinds of debt financing. What Are the Basic Elements of a Sale?The elements of a sale might involve the request by a consumer to buy an item of interest from a seller. The seller could provide information about the product to the buyer, including price, quality, any warranty, a return policy. The buyer and seller could then agree on the terms of the sale. At that point, the seller would indicate the total amount of money required for the purchase. The buyer would provide payment and then take possession of the item. When Is a Sale Complete?Normally, a sale is considered complete when the agreed-upon payment for an item is provided by a buyer and accepted by a seller, and the item is presented to the buyer. Can a Sale Involve Something Other Than an Exchange of Goods?Yes, a sale can also refer to the reduction in the price of particular goods or services by a seller in order to make those goods or services more attractive financially to potential buyers. The Bottom LineThe Merriam-Webster dictionary defines a sale as the transfer of ownership of, and title to, property from one person to another for a price. Millions of sales take place every day. The many types of sales transactions made support the financial health of consumers and businesses. Sales drive the well-being of economies and nations all over the world. They are the bedrock of successful commerce. How are brokers compensated?Most Brokers Earn Commissions, But Some Are Paid a Flat Fee
Commission-based pay is the most common fee arrangement for brokers, regardless of the industry. Commissions are typically based on a percentage of the sale price, loan amount, the total rent amount, or policy premium, and the percentage varies by industry.
What is the relationship between a broker and a seller?Broker-Client Agency Relationships. Seller agency occurs when the real estate broker is representing the seller in selling his or her property. This type of brokerage relationship is created when the seller and the broker enter into a written contract known as a listing agreement.
What are the two types of seller agency in Tennessee?To represent a seller, a “bilateral, written agency agreement” would be the listing agreement: an Exclusive Right to Sell listing or an Exclusive Agency listing. [These two types of listing agreements have served as a bilateral written agreement to establish an agency relationship since 2006.
What is an open listing agreement?Open Listing: A contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller(s), and the seller(s) agrees to pay a commission to the listing broker only if the property is sold through the efforts of the listing broker. (
|