1. Prepare closing documents
This is an important step in the contract to close checklist and requires gathering every document related to the transaction. This includes all contracts, loan documents, title information and insurance policies. These must then be reviewed and signed by both parties to make them legally binding. Any missing documents should be addressed with the appropriate party before the closing is executed.
2. Arrange inspections
Inspections are an essential part of the contract to close checklist as they ensure that all conditions of the sale are met and any issues with the property are addressed before a transaction can be completed. Typically, buyers will have their own inspector, but sellers may also need to arrange for separate inspections such as termite or septic tank inspections in order to comply with regulations.
3. Obtain insurance policies
Insurance is another important part of the checklist and needs to be obtained prior to closing on a property. This includes title insurance from an independent third party that guarantees ownership rights free from liens and other encumbrances; homeowner’s insurance for the protection of the property; and liability insurance for personal protection.
4. Verify title
The title must be verified to make sure that there is free and clear ownership of a property before it can be transferred from one party to another. This includes conducting research on the chain of title, making sure all liens against the property have been addressed, and confirming that all taxes are paid up to date.
5. Prepare deed
Once title is verified and confirmed, a deed document will need to be prepared in order to transfer ownership of a property from one party to another. The deed should include both parties’ names, legal addresses, signatures as well as any special conditions or restrictions associated with the transfer.
6. Transfer utilities and services
To ensure that all services related to a property are set up correctly, utilities and other services will need to be transferred from the seller’s name into the buyer’s name. This includes phone service, cable television, water, electricity, gas and so on.
7. Collect funds for payment
This step involves collecting all funds necessary for closing including down payments, loan funds, closing costs and any other monies associated with the transaction. All funds must be collected in advance of closing in order for the transaction to properly proceed as planned.
8. Review closing documents with buyer/seller
Before signing off on any documents, both the buyer and seller should read through all closing documents and make sure they are in agreement with the terms laid out in their contract. This is also a good time to ask any questions related to terminology or specific instructions within the document.
9. Execute closing documents
Once all paperwork has been reviewed and approved by both parties, it must then be signed by the buyer and seller in order to complete the transaction. All original documents should be collected at this point as well as copies for each party’s records.
10. Issue title insurance policy
Title insurance will need to be issued after closing documents have been executed in order to protect against any potential claims on ownership of a property. This insurance policy should cover any potential losses associated with title disputes and other issues related to ownership.
11. Record deed at county recorder’s office
The deed document must be filed and recorded at the county recorder’s office in order for the transfer of ownership to take effect. This officially establishes the buyer as the new owner of the property.
12. Close escrow accounts
Once all paperwork is in order and the deed is recorded, the buyer and seller will need to close any escrow accounts related to the transaction. This includes closing out any loan accounts, paying off liens or other associated fees, and verifying that all funds have been properly disbursed.
13. Disburse funds and transfer ownership
All funds should be disbursed to the appropriate parties and ownership of a property should be transferred to the buyer. Once this is complete, the closing process is finished and the transaction can be considered finalized.
14. Distribute keys and documents
After the closing process has been completed and ownership of a property is transferred, keys and other documents should be distributed to the new owner. This includes any garage door openers, remote controls, access cards or security codes that may be associated with the property. It also involves sending copies of all paperwork related to the transaction such as loan agreements, title documents and so on. The buyer should keep these documents in a safe place for future reference.
15. Complete post closing paperwork
Once the transaction is complete, there may be some additional paperwork that needs to be completed in order to finalize the process. This could include filling out forms for tax purposes, filing documents with the city or county government and notifying any relevant third-party agencies about the transfer. All post-closing paperwork should be completed as soon as possible to avoid any potential issues down the road.