How Does a Real Estate Closing Work?
The real estate closing may be the most critical part of the changing real estate transaction process. At a closing, real estate title officially changes hands from the seller to the buyer. Contrary to popular myth, a real estate closing is a process, not a single meeting. More on that below. If every step of the process goes smoothly, the final meeting usually goes smoothly. But if one part of the process doesn’t go smoothly, the meeting is usually a disaster.
A St. Petersburg real estate lawyer helps ensure that the entire process proceeds according to plan. Furthermore, a lawyer is a strong voice for buyers and sellers through the entire real estate closing process, and especially during the final meeting. Usually, a real estate sale or purchase is the sale or purchase of a lifetime. So, a lawyer is a must-have during the entire process.
Pre-Closing Preparations
Long before the big day comes, buyers and sellers must complete certain tasks. Buyers typically finalize their mortgage applications to secure financing. Additionally, although a professional has probably inspected the property, many buyers chose to do a last minute personal walk-through.
Also before the closing meeting, sellers must agree to all sale provisions in writing. Furthermore, in anticipation of closing, sellers must prepare to move out of occupied property. They normally have about thirty days after closing to complete the move.
Title Search and Insurance
A title search checks for any liens, unpaid taxes, or legal issues tied to the property that could affect ownership. If the title is clear, the buyer can purchase title insurance, which protects against future claims of ownership disputes. A title company, or a St. Petersburg real estate lawyer, usually handles this process.
Reviewing the Closing Disclosure
This document outlines all of the costs associated with the purchase of the property, such as the purchase price, loan terms, closing costs, taxes, and other fees. Legally, buyers must provide these documents to sellers at least three days before the first scheduled closing meeting. So, a St. Petersburg real estate lawyer has plenty of time to review all the financial details and ensure there are no surprises at closing.
The Closing Meeting
On the day of closing, the buyer, seller, and their respective agents or attorneys meet at a designated location, often a title company’s office or an attorney’s office. Here, both parties sign all the necessary paperwork. The buyer signs the mortgage documents, and the seller signs the deed transferring ownership of the property.
This meeting is usually face to face. However, some jurisdictions allow virtual or remote closings. Usually, virtual closings were a temporary coronavirus measure that became a permanent change.
Funding the Transaction
On the financial side, during the closing, the buyer provides the necessary funds to complete the transaction, usually by wire transfer or a certified check, for the down payment, closing costs, and any other fees. If the buyer is financing the home, the lender disburses the loan funds at this time.
Funds Disbursement
Once all documents are signed and the funds are in place, the title company or closing attorney disburses the funds. The seller takes the sale’s proceeds from the sale and the buyer officially takes ownership of the property. The transaction is recorded with the local county office, officially transferring ownership.
Connect With a Hard-Working Manatee County Lawyer
A real estate closing is a complex process. For a confidential consultation with an experienced estate planning lawyer in Bradenton, contact Drude Tomori Law. We routinely handle matters throughout the Sunshine State.
