As the name suggests, real estate closing makes up the final step in the entire process of buying or selling a house. When the offer made by the buyer for a real estate is officially accepted by the other party, a purchase agreement is drawn up, the money is paid to secure the contract, and a closing date is decided. On this day, the ownership of the estate officially changes hands. The buyer can subsequently move into their new home.
What Does the Closing Procedure Look Like and Who Might Be There?
Closing procedures may vary slightly across different states, but the following individuals or parties are generally present at the settlement meeting or the closing;
- A closing agent: The closing agent may work for the title company or the lender.
- Attorney: Both sides usually have their own attorneys that represent them legally.
- Title company representative: He or she will produce written evidence of the ownership of the property.
- The seller
- The seller’s agent
- The buyer
- The buyer’s agent
- The lender or mortgagee
The closing agent will arrange the settlement meeting. He or she will ensure that all documentation is done correctly and that closing fees and escrow payments are made.
There are several key documents that are crucial to a real estate closing.
The Loan Estimate
This provides all the information about the buyer’s loan, from interest rates to the terms of the loan to closing costs.
The Initial Escrow Statement
Since there are several steps involved in a real estate transaction, a neutral third party will oversee the whole transaction, including the protection of the documents and the funding. At the time of the closing, the buyer will deposit the closing costs as well as the down payment into the escrow account.
This document signifies your promise to pay back the loan. It also states the amount, the terms of the loan, and what the lender can do in case of non-payment.
Certificate of Occupancy
A newly constructed building or a property that was repurposed requires a certificate of occupancy before the new owner can move into the building.
Take a Final Walk-Through
Before the closing takes place or any papers are signed, buyers usually perform one last survey of the property. This is to safeguard them from any damage between the inspections and the closing.
The Signing of All the Paperwork
Most of the critical documents will be signed at the closing date. Both the seller and the buyer will meet, along with their agents, final payments will exchange hands, and the ownership will transfer to the new owners after the signing of the legal documents.
All in all, the closing is the final step in the extended process of house buying, and it effectively seals the deal. If you’re looking to buy a house anywhere in Orlando, Florida, you can acquire our dedicated services to make thoroughly informed decisions throughout your house buying journey.
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