The real estate closing is where all the paperwork gets signed, payments are made, and ownership officially transfers from the seller to the buyer. Whether you're buying or selling, here's what to expect during this final step.
So what should you expect at a real estate closing?
1. Reviewing and Signing Documents
Both parties will sign a variety of documents, including the deed, mortgage agreement (if applicable), and closing disclosure. Buyers should carefully review these forms to ensure everything matches the agreed-upon terms.
Tip: Bring a valid ID and any required paperwork, such as proof of insurance.
2. Escrow Payments and Final Costs
The buyer must pay any remaining down payment, closing costs, and fees. These funds are typically held in escrow until the transaction is completed.
Common Closing Costs Include:
Loan origination fees
Title insurance - Very important but optional. Title insurance covers you in the event that an heir or previous owner comes back and attempts to (re)claim ownership of the property.
Property taxes and insurance escrow
3. Title Transfer and Deed Recording
The title company or attorney will officially transfer the property title to the buyer and record the deed with the local government, making the transfer official.
Fun Fact: Once the deed is recorded, the buyer becomes the legal owner of the property!
4. Final Walkthrough (Optional but Recommended)
Many buyers opt for a final walkthrough before the closing to ensure the property is in the agreed-upon condition and that any requested repairs have been made.
5. Receiving the Keys and Celebrating
The most exciting part! After all the documents are signed and funds are exchanged, the buyer receives the keys to their new property, and the deal is done.
Conclusion
A real estate closing is a critical step where everything comes together to finalize the deal. Knowing what happens during a real estate closing helps both buyers and sellers feel prepared, making the process smoother and stress-free. Once the documents are signed and the deed is recorded, it's time to celebrate!
The information in this article are the opinion and experience of the author. Due diligence should always be practiced before investing in real estate.
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