Anyone who has considered buying or selling real estate has likely heard the term “closing.” It refers to the last step of real estate sales when a buyer is provided with the title to the home or business.
After an offer on a property has been accepted, there is a period before the closing date. Whether closing involves receiving a stock certificate for an apartment or a deed for a home, this part of the real estate process has a lot going on. Below, we’ll delve into all these steps.
Inspection
An inspection needs to be done to determine the condition of a property. This is an important part of the process as defects may lead to a reduced price or a buyer who walks away from the offer. If problems are found, buyers may also ask for the sale to be completed only after repairs have been made.
Down Payment and Contracting
Once the seller and buyer agree on terms, a contract is made and the buyer provides the down payment. This money is left in escrow. If the sale isn’t cash, buyers submit loan applications to acquire a mortgage. If the sale relates to a co-op, a package needs to be submitted for approval at this time.
Lien Review, Title Search, and Reporting
Title searches are important to make sure there are no judgments, liens, or other violations against the seller or the property. This is also done to ensure the person selling the property is the legal owner and is allowed to move forward. A findings report is provided to both the buyer and seller.
Actual Closing
In closing, all issues should have been dealt with. Closings typically involve the buyer, seller, their attorneys, the bank attorney, the title closer, and real estate agents. Title closers will ensure all liens, judgments, and mortgages have been paid and are recorded with the deed.
The buyer will leave the closing with a copy of the deed, which will be recorded by the title closer at the county clerk’s office. The title company is also there to ensure the buyer the ownership of the property and ensure the lender that the mortgage is valid and has priority.
Whether you are buying or selling a home, it’s recommended to have an attorney represent you throughout the process. Bell & Shah will negotiate your contract, determine who pays what fees and handle adjustments like taxes for closing. Both attorneys help you understand documents, draft affidavits and confirm that property documents are in place.
