Who qualifies as a third party in a real estate transaction?

In a real estate transaction, a third party is defined as any non-client participant who is involved in the process but does not have a direct interest in the outcome of the transaction. This can include a variety of individuals or entities such as lenders, inspectors, appraisers, title companies, and even real estate agents representing one side or the other. The key aspect that qualifies them as third parties is the lack of a client relationship with either the buyer or the seller.

By understanding that third parties play a significant role in facilitating real estate transactions, one can appreciate the various functions they serve, such as providing appraisals, conducting inspections, or ensuring proper title transfer, which all contribute to a successful transaction.