Closing Day
Closing day is the
culmination of your real estate transaction . . . the day the
funds are exchanged, the deed is recorded and the property changes
hands. The buyer and seller will sign all the required legal
documents and exchange the monies that make the settlement final,
which usual takes place a day or two before closing period.
Depending on where you
live, the process is called the settlement, the transfer, the
closing, passing paper, or going to escrow. The actual event may
be held in the county courthouse, at a title company, at the
lending institution, the real estate office, or at the attorney’s
office.
The seller and buyer
have separate appointments to sign at the local title company. A
representative of Asay Real Estate always accompanies their
clients. the lender is occasionally present.
Whatever the practice,
the basic transaction is the same. The seller proves a marketable
title, the buyer pays for the property, and the seller hands over
the deed. If there is new financing, the settlement includes the
signing and delivery of a bond and mortgage, and in some states, a
trust deed. The deed is a bill of sale for the real estate.
Sellers do not sign and deliver a deed until the money for the
sale has been received. As the buyer, you cannot pay until you
receive the mortgage loan. The lender will not turn over the money
without receiving a mortgage. You cannot sign the mortgage until
you own the property.
Obviously, the
transactions must take place at one time and in a very specific
order. If for some reason you cannot attend the closing,
arrangements can be made for your signature on the various
documents. Then all you’ll have to do is pick up the keys!
What you need to
know about the closing
Closings can last
anywhere from about a half hour to two hours. During this
time, you will sign all the required legal documents and exchange
all money in order to make the settlement final.
The usual documents
that must be signed are the deed, which conveys title of the
property to the buyer; the mortgage, which is a lien against the
purchased property; and the settlement statement, which lists all
closing costs and related fees. In addition there are many other
documents that must be signed, they will be explained at the
closing table by the closing agent and/or your attorney.
When the contract for
purchase of the property was presented, the amounts written in by
the Realtor or mortgage professional were estimates. The
settlement statement contains the actual fees associated with the
loan, including lender fees, escrow amounts for taxes and
insurance, recording fees, real estate commissions and the amount
the seller will receive.
The buyer will be
informed to arrive at the closing with certified funds for the
determined amount in order to close. This amount will be less the
deposits, if any, that have been given in order to secure the
property. Both buyers and sellers must provide photo ID so
documents can be properly notarized.
Once all of the
documents have been signed, the property is transferred to the
buyer. The buyer may now move in on the date agreed upon between
the buyer and seller as recorded in the sales contract.
Dependable
