Buying or selling a home is not a quick process. There are many steps between when a buyer makes an offer and when they pick up the keys. The final step is called the real estate closing process, and it can take more than a month. In fact, the average time to close is 43 days.
A residential real estate closing is the final step in the process of buying or selling a home. It is when the ownership of the property officially transfers from the seller to the buyer. At this meeting, all legal documents are signed, payments are made, and the transaction is finalized.
On closing day, a buyer has two primary responsibilities: signing legal documents and paying closing costs and escrow items. There are numerous legal documents involved throughout the process, so make sure you read them carefully and know exactly what you are agreeing to.
Here is an overview of what typically happens during a closing:
- Review and signing of documents. A closing disclosure outlines all the costs and terms of the mortgage. A deed is a legal document transferring ownership from the seller to the buyer. If the buyer is using a mortgage, they will sign the loan note, mortgage agreement, and related paperwork.
- Payment of funds. The buyer brings cash to close, which requires a combination of a down payment and closing costs. The lender may send the loan funds to cover the remaining balance owed. Payments to the seller, real estate agents, inspectors, and title companies are distributed.
- Title transfer. A title company or attorney ensures the title is clear (without legal claims or liens) and transfers ownership to the buyer. The new deed is recorded with the county to document the change in ownership.
- Title insurance. The buyer and lender often purchase title insurance to protect against potential future claims on the property’s title.
- Escrow. Certain costs like property taxes, HOA fees, or utility bills may be split between the buyer and seller based on the closing date. An escrow account may be set up by the lender to manage future payments for property taxes and insurance.
Closing on a home is often done in steps and on different days. The following parties are usually present:
- Closing agent
- Attorneys
- Title company representative
- Home seller or their representative
- Seller’s real estate agent
- You, the buyer, or your representative
- Your real estate agent
- Your lender
The closing agent conducts the settlement meeting. They make sure all documents are signed and recorded and distribute closing fees and escrow payments properly.
Contact Us Today
A real estate closing is exciting to anyone buying or selling a house. This means that the sale is within the “home” stretch.
Trust a Greenville real estate attorney from Blackacre Law, LLC, to ensure everything goes smoothly. We represent parties in both residential and commercial closings and can answer your questions. Schedule a consultation today by calling (864) 775-5400.