What does the term 'Domino Transaction' refer to in real estate?

The term 'Domino Transaction' in real estate refers to a sequential chain of events in transactions. This concept typically applies when the sale of one property is dependent on the sale of another property. For example, if a homeowner needs to sell their current house in order to finance the purchase of a new one, the successful closing of the first transaction (the sale of the current home) must occur before the second transaction (the purchase of the new home) can be completed.

This interdependency among transactions can lead to a series of closings that are interconnected, much like a line of dominoes falling in sequence. Understanding this concept is crucial for real estate professionals, as it impacts transaction timing and risk management.

In contrast, the other options do not accurately define 'Domino Transaction.' A method of property appraisal focuses on valuing properties, a type of lease agreement outlines terms for renting property, and a strategy for marketing properties involves ways to promote real estate offerings, none of which capture the sequential nature inherent in a Domino Transaction.