Buying a house brings a mixture of excitement and overwhelm, whether you are a buyer or seller. The many steps and documents involved can cause even seasoned individuals to find the real estate closing process intimidating.
Here are a few things to know, prepare for, and expect during a real estate closing.
What Is a Real Estate Closing?
In simple terms, a real estate closing is when a property’s ownership is legally transferred through a number of steps between the time the buyer and seller come to a purchase agreement. Ideally, it occurs without any delays, disagreements, or extra costs. There are numerous moving parts that should be handled carefully since lack of attention to detail could easily cause a closing to fall through or even result in legal action.
The closing of a real estate transaction should be viewed as a process, rather than a single stage in the property buying procedure. When a seller formally accepts an offer on a property, a purchase agreement is made, and a closing date is determined.
Where Does the Closing Process Take Place?
Closing typically occurs at a closing agent’s office, which could be the real estate attorney’s office, whether they are acting as the closing agent or not. Closing can also take place remotely (for example, by computer, using remote notaries, or other means to facilitate, mainly when parties are located in different areas).
Who Attends the Closing?
The individuals who attend the closing can depend on many factors, but in general you can expect any the following attendees:
- Home buyer
- Home seller
- Attorneys
- Closing agent
- Real estate agents
- Mortgage lender
What is Required for the Real Estate Closing to be Completed?
The process of buying and selling a property concludes with the real estate closing.
In addition to paying closing fees and the initial escrow payment for your homeowner’s insurance and property taxes, a buyer must sign a number of legal documents pertaining to the transfer of property ownership. This simultaneous exchange of all paperwork and monies between the buyer, the lender, and the seller is known as a “settlement,” and occurs when the transaction is complete.
After closing, the seller and buyer formally exchange possession of the property. Your agent, the lender, and the title company will carry out their respective obligations.
Contact Us for Guidance
If you’re not a real estate attorney or a real estate agent, the process and documents involved in a real estate closing can be confusing or intimidating. Reading pages and pages of legal and financial terms can be overwhelming.
Whether you are buying or selling, you want to have your interests protected during the closing process. At Apfelbaum Law, our attorneys will answer guide you throughout the process, answer your questions, and provide you with the information you need to make informed decisions. Contact us today.
