A closing is defined as “a meeting of all parties involved in a property transaction. During which pertinent documents are signed and transferred, and funds are distributed.” Typically, it is handled by a closing agent (closer). However a title insurance company or an attorney can also do it. It will last approximately 45 to 60 minutes.
The title company will begin preparation for your close shortly after you sign your contract. A request for payoff information is sent for existing mortgages. Also a request for any information regarding homeowners or condominium association dues and/or transfer fees. If a new mortgage is being obtained, the closer will work closely with the new lender . This will help make sure that all of the lender’s official requirements are met.
A title exam is ordered to verify the seller’s right to transfer ownership. Also to discover any outstanding mortgages, liens, restrictions, easements, etc. Because they may affect the properties ability to close. A title commitment will then be issued to show any matters reflected in the title exam. As well as a determination of the documents needed to properly transfer the title of the property to the buyer. The closer will also work closely with the lender and Realtors. This is to coordinate the ordering of the termite inspection, survey, homeowner’s insurance and the flood insurance if applicable.
When the lender has received all required documents from the buyer and the loan has been approved. The closing agent will schedule the date and time for the close with all parties. The lender will prepare a closing package. It consisting of the loan conditions, instructions, fees charged in connection with the new loan. Also any loan documents to be delivered to the closer. Who will then prepare all of the necessary closing documents. Including a closing statement outlining all costs associated with the transfer of ownership. As well as fees charged in connection with the new loan.
Copies of the closing statement are usually faxed to the lender and Realtors. If the title agent has been provided a fax number for buyer and/or seller they may also receive a copy. The buyer must bring a cashier’s check to close made payable to the Title Agency. The seller will also be advised of the proceeds of the sale of the property.
The closing typically takes place in the title office. The closer, buyer, seller and any Realtors sit around a table while the closer explains the closing statement. As well as other closing documents. When all of the documents have been signed. Including the deed, and the buyer has given the cashier’s check to the closing agent. The seller receives his or her proceeds from the sale.
After the closing, the title agency sends the original deed and mortgage to the courthouse for recording. The completed loan package is sent to the lender. All remaining funds are disbursed according to the settlement statement. This includes the mortgage payoffs. The owner’s and lender’s title policies are issued when the deed and mortgage are returned to the closing agent after recording.