Basic Steps of a Real Estate Closing
Step 1 - Escrowing the Contract
An "escrow" or "sales" contract is signed by the buyer and the seller, which documents the intended transaction, begins the process, once received by our Offices. Over the following days information is gathered and confirmed on the property which includes but is not limited to obtaining tax information, loan or mortgage payoffs, surveys if necessary, homeowner/maintenance fees, inspections/reports, and hazard and other insurances as well as legal papers. These items are ordered and title commitments/preliminary reports are reviewed and sent out.
Step 2 - Title Search
This is a critical step where a search is made of available public records. The search includes deeds, mortgages, paving assessment, liens, wills, divorce settlements and other documents affecting title to the property.
Step 3 - Title Examination
Title examination is the examination of the documents found during the title search that affect the title to the property. This is when verification of the legal owner is made and the debts owed against the property are determined.
Step 4 - Document Preparation
Review lender instructions/requirements, review instructions from other parties to transaction, review legal and loan documents, assemble charges, and prepare closing statements and set closing.
Step 5 Settlement - The closing of the transaction
Escrow/settlement officer oversees closing of transaction. Seller signs deed, buyer signs new mortgage, old loan is paid off, new mortgage is signed. Seller, real estate professionals, attorneys and other parties to the transaction are paid. Documents are recorded in the county in which the property is located.
Step 6 - Post-closing
After the signing has been completed, the title agent will forward payment to any prior lender, pay all parties who preformed services in connection with you closing, and pay out any net funds to the seller before recording the documents with the county. This will occur without any additional involvement from the buyer of seller.