Real Estate Closings: What to Expect
If you are a first-time home buyer, you may be confused about what happens at a closing. And even if you have bought or sold a home before, you may not remember exactly what the closing process entails. We want to help demystify the process by letting you know what you can expect at your closing:
Real estate closings mark the end point in the process of buying and selling real property. The buyer considered the properties that were available and made an offer. The buyer and seller then signed a purchase and sale agreement. This contract determined the obligations each party would undertake towards completion of the sale. Although a lawyer might be consulted prior to the making or accepting of an offer, it is crucial that the buyer and seller each have legal counsel present at the closing.
The closing marks the date when the parties complete their contract and the sale is finalized. The buyer becomes the official owner after paying the agreed-upon price. The seller gives the new owner the keys to the property and relinquishes all claims. The new owner then has all the rights and responsibilities of ownership. Various documents are prepared to ensure an efficient transfer of the property, including a closing statement explaining the purchase price, the buyer’s costs, and financing. Each party is to receive a copy of this statement. If there were any costs covered by the seller prior to the closing, such as any realtor's costs, prepaid real estate taxes, utilities, or insurance, those are also accounted for. Any costs associated with the closing, such as realtor’s fees and transfer taxes, are listed. Finally, the deed is signed, and the buyer receives a copy. The new deed is then readied for filing at the clerk's office. The filing of the deed, called the recording, establishes official proof of the new ownership. If there is a mortgage, that is signed and recorded as well. This means that the mortgagee (lender) has an ongoing claim against the property until the loan is paid by the owner (mortgagor).
At Mehra Law Group, P.C., we make the closing process as easy and painless for our clients as possible. If you need a lawyer for your real estate closing, call us today at [phone] or simply reply to this email.