1. Gather the Necessary Documents and Forms
Before a real estate closing can occur, both parties must have all of the necessary documents and forms filled out, such as the deed, title insurance policy, closing disclosure form, loan documents, and more. The buyer and seller’s attorneys should create a list of documents to be signed and gathered before the closing.
2. Finalize Closing Costs
At the real estate closing, the buyer and seller will come to a final agreement on all of the closing costs that need to be paid at the time of sale. This includes things like transfer taxes, title insurance premiums, attorney fees, loan origination fees, etc. These costs are typically split between both parties in accordance to their respective agreements.
3. Sign Closing Disclosure Form
Prior to signing any documents at closing, both parties should review and sign the Closing Disclosure Form which outlines all of the associated costs with buying or selling a home. Once this document is signed by both parties it is considered legally binding and cannot be changed without mutual agreement.
4. Prepare Money for Closing Costs
At closing, the buyer and seller must bring all of the necessary funds to cover the closing costs associated with the sale. This typically involves bringing a cashier’s check or certified check written out to the title company or attorney handling the closing. It is important that both parties have this money ready before closing as it cannot be transferred later on once documents are signed.
5. Review Settlement Paperwork
Prior to signing any documents at closing, both parties should also review all settlement paperwork together to ensure everything is accurate and in accordance with their agreements. This includes things like deed information, loan amounts, title insurance policies, etc. Any discrepancies should be addressed and corrected before the documents are signed.
6. Buyer and Seller Sign Deed
At closing, the buyer and seller must both sign the deed to transfer ownership of the property. This document should be reviewed by both parties’ attorneys prior to signing as it is a legally binding document that cannot be changed once signed.
7. Finalize Mortgage Loan Documents
If applicable, both parties should also review and sign all mortgage loan documents at closing. These documents typically include things like promissory notes, loan applications, security agreements, etc., which will outline all of the terms for repayment of the loan as agreed upon by both parties.
8. Prepare Closing Statements
At closing, the title company or attorney handling the transaction will prepare closing statements for both parties to review. This statement will contain all of the costs associated with buying and selling a home as well as any applicable credits that may apply.
9. Record the Deed at the County Clerk’s Office
Once all of the documents have been signed by both parties and all funds are ready to be exchanged, then existing deed must be recorded at the county clerk’s office in order to transfer ownership of the property from one party to another.
10. Transfer Ownership of Property
Upon recording of deed at county clerk’s office, ownership of property is officially transferred from seller to buyer and real estate closing process is complete. Both parties can now enjoy their new homes! Congratulations!