The Real Estate Closing: Sealing the Deal
Real estate closings can be a very stressful experience for those who have not had prior experience, and can also be stressful for some whose prior experience had not been smooth. Below are some answers to commonly asked questions to set your mind at ease and help make your closing experience go smoothly.
What is a Closing?
A “closing” is the culmination of the contract. It is where the buyer provides the purchase funds and the seller signs the deed and hands over the keys. .Both parties also will be signing various other documents and the buyer, if financing, will also be signing all the papers associated with effecting a mortgage. The closing date is typically scheduled four to eight weeks from the contract signing.
If the property is being financed, buyers will receive a closing disclosure at least three days before the closing. This is the final chance to review the loan terms and closing costs. Buyers must review the interest rate and loan terms carefully, so there are no surprises, within 36 hours.
The Final Walk-Through
Purchase contracts typically provide for a walk through the home they are purchasing within 24 hours of the closing to check the condition of the property. This final opportunity to view the property takes about an hour and you and your agent will have the opportunity to make sure everything is working properly and verify that any required repair work has been completed.
During the Walk-Through:
- Double-check that everything in the house is working properly.
- Run the faucets.
- Check for leaks.
- Test all appliances.
- Flush all toilets.
- Open and close all doors.
- Check the garage door opener.
- Run the garbage disposal.
- Turn on all fans.
If things seem amiss, you may need to make adjustments at closing or, if not resolvable on short notice, delay your closing to iron out any issues. If everything is in good working order, your next stop is the closing table.
If the closing is held in-person, all interested parties including, the buyer, the seller, their attorneys, if any, and their agents, and a representative of the lender will be invited to meet with the closing agent, who will conduct the closing. Most closings take place at a title company or an attorney’s office. There will be much paperwork involved, but in the end, it will all be worth it.
Be sure to bring a government-issued ID, a copy of the sales contract, a homeowners insurance certificate, proof of any insurance required to close. Any additional funds required to close should be wired to the closing agent’s firm prior to the closing.
Closing fees often include:
- Commission fees
- A loan application fee
- An origination fee, which lenders charge for processing your loan
- The appraisal fee
- Credit report fee
- An underwriting fee, which covers the lender’s costs of researching whether to approve you for the loan
- A title search fee
- Property taxes, which are due within 60 days of the purchase
- A recording fee for filing a public land record with the courthouse.
Refer to your contract to see which party bears which fees.
Richard S. Weinstein
A real estate attorney can help you with all of your real estate needs. Richard S. Weinstein is an experienced real estate attorney and title agent who can help you with your real estate transactions. Having legal representation makes good real estate business sense. A competent and experienced attorney will protect your interests.
With over 50 years of experience as an attorney, Richard S. Weinstein assists clients with the important financial situations in their lives. Whether you are dealing with bankruptcy, real estate (both commercial and residential, including short sales, foreclosures, and title insurance), estate planning, probate, business formations, or sales or mergers, Richard S. Weinstein is the attorney with the education, experience, and knowledge you need! Call us at (561) 745-3040 or visit his website at rweinsteinlaw.com.
© Copyright 2021. All Rights Reserved.