The local Houston housing market operates by means of a network of information that enables owners of dwellings to find out who is looking for housing and enables home seeking families to find out which housing units are for sale or for rent. A principle means of communication is the classified ad in the local newspaper. Another is the “For Rent” or “For Sale” sign placed on the property where people looking for housing can see it. Properties for sale or for rent may be listed with a local real estate broker. The broker receives a commission-usually 6 percent of the sale price-when he sells a property. Most home sales are made through brokers, but apartment rentals are generally arranged in other ways. In many cases homeseekers come to the broker’s office. Because individual brokers may not have a suitable property for such prospective buyers, they often exchange listings with other brokers and split the commissions with them. After a property owner and a prospective buyer or renter are brought together, the selling price or rental terms are negotiated, and the necessary legal documents are prepared. The real estate broker usually helps arrange mortgage financing and fire insurance for the home buyer. He may also make arrangements for title insurance-a guarantee against loss if the seller’s title to the property proves defective-and structural inspection reports. Normally, the various deposits required and the documents concerned with the transaction are held by an escrow agent, a licensed neutral third party, until the transaction has been completed. Usually, the escrow agent also completes the official closing statement which settles accounts between the home buyer and the home seller. The seller usually pays the broker’s commission. But the closing costs to the buyer-the cash he must provide for the title insurance, prepaid property taxes, fire insurance, and various fees- are usually substantial. The buyer must have at least several hundred dollars in ready cash. Also, the down payment may amount to several thousands of dollars, even though it is often made with a second mortgage or with proceeds from the sale of another house. With government financed mortgage loans that are nearly equal to the full selling price, down payments are quite low. Renting an apartment is much simpler than buying a house. There is no mortgage to arrange, no need to prorate property taxes or insurance payments between the old and the new tenant, and in most cases, no need to enter the transaction in public records as must be done when a building is sold. But cash deposit as security against damage to the property and prepayment of rent for one or two months may be required. In such cases a new tenant, like a home buyer, may need a substantial amount of ready cash.