Whether you’re in the real estate market to buy or sell, there is strong reason to suggest the importance of knowing the entire process, including legalities. One part of this process where most people stumble is closing. Closing a settlement, in layman terms, means legally transferring the ownership of a property from the seller to the buyer. It is the final step of the real estate process.
We at TC Global Commercial, have listed major pointers that will help you ace your next closing!
Preparing for closing
Just because this is the final step of the real estate buying/selling process, doesn’t mean things are finalized. There have been cases where deal fall through just before the final papers are signed! Don’t worry though, there are ways you can prepare for a closing that will keep you on top of things. The first thing you need to do is to keep your team together. This includes a real estate agent, an attorney, an escrow officer, and title insurance agent. Then, you need to make a list of the things that need to be done before you can claim ownership or transfer ownership, depending on whether you’re buying property or selling property. You could also hire a brokerage and have them take care of everything in a professional manner.
Where is it held and who attends it?
Closings usually take place in the title company’s office. Title companies are the ones who are responsible for correctly transferring ownership, inform about any unpaid taxes, mortgages etc., levied on the property and bring into light restrictions which may cause delays or affect sales. When all such issues are resolved, the property is said to have a “good title.” In most states, closings are attended by the parties involved, i.e. the buyer and seller, the real estate agent or brokerage representative, respective attorneys of both parties, title insurance representative, closing agent and escrow agent. There can be possibilities of one person playing two or three of the above-mentioned roles.
How long does the process take?
Typically, closings can take around 30-45 days for residential real estate and may take a few extra days for commercial real estate. This is because the process of buying and selling commercial real estate is more complex and involves more steps than the former. These numbers are, however, a best-case-scenario.
What should you bring on closing day?
On the day of closing, you need to be prepared to be involved in a lot of paperwork. The closing agents will take care of everything for you, but there are certain things that you will need to carry with you on this day –
- A government issued photo ID
- Certified funds of cashier’s check
- Proof of insurance
- Closing disclosure
- Final purchase agreement
The Bottom Line
Closing is a complex process that may look like a daunting task. But, with the right preparation and a good agent, you will be just fine. A thing to note about closing is that it isn’t mandatory for it to be done in person, but it is recommended. Maintain good communication with your agent and your attorney and make sure all your documents are thoroughly reviewed by them. Once closing is done, make sure you store your closing documents safely for future reference.
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