The closing day of a character deal refers to the day on which all the documents and agreements related to the sale transaction are signed by the buyer and seller. This implies that the legal move of the house is complete. There are a number of personnel who could be representing the three parties involved in a real estate transaction namely the buyer, seller and the lender. The set of people may include the real estate agents, attorneys and the closing officer. The objective of the closing officer is to ensure that the necessary documentation and commercial terms of the deal are adhered to and pays an objective role to ease deal closure.
A successful closing necessitates that certain important conditions are met by the buyer, seller and the lender. These conditions are elaborated in sections below.
Handing over the house owner’s insurance receipt to the lender
The seller would hand over the keys to the buyer only once he receives the complete payment. The payment arranged by the seller by a lender shall be handed over to the seller only in case the buyer provides a house owner’s insurance receipt to the lender.
Execute the mortgage papers by signing
The buyer has to complete the execution of the mortgage papers by reviewing and signing the mortgage papers. In legal parlance, this is called the mortgage or the deed of trust. This is an acknowledgement of the acceptance of all the terms and condition of the mortgage loan by the buyer.
Review of the Settlement statement form
A form commonly known as the HUD-1 settlement statement is used to detail each and every payment made by the parties involved in the transaction. This form has a lot of significance attached to it since it is in compliance to the Real estate Settlement Procedures Act commonly known as RESPA. The closing agent would review the form with the buyer and seller and take their signatures to ascertain the correctness of the amounts involved in the transaction.
move of title of character by the seller to the buyer
A deed signed by the seller is given to the buyer suggesting that the seller has relinquished the title to the character in favor of the buyer.
Handing over the keys to the buyer
At the end of the closing procedure, the seller hands over the keys of the character to the buyer. The seller may also provide any other paper work related to the contents within the house.
Recording of legal documents
This is the last and final step of the closure course of action. The closing officer and the attorney would officially record documentation establishing the legality and move of character.
It is advisable that the closing day is preceded by a pre-closing meeting between all the parties involved in the transaction. This planning session makes the proceedings during closing go hassle free and a smooth change of title from the seller to the buyer. The buyer should always have a contingency fund ready to cover for closing related expenses.