4 FAQs About Closing

Closing (also called settlement) is the legal transfer of property ownership. What do you need to know about this significant day?

1. WHO ATTENDS THE CLOSING?
   In most states, closings are in person, although remote closings are becoming more common. Your buyer’s rep will provide the details for your transaction. The participants may include you, your agent, the seller and their agent, and each party’s attorney.
   Additionally, a closing agent, a title insurance representative, and an escrow agent attend the closing. Often, one person fulfills all three roles: coordinating and recording the exchange of documents and money, disbursing funds, and handling other details.
2. WHERE IS CLOSING HELD?
   Typically, closings are held at a title company’s office. The company is responsible for confirming the current legal owner of the property, revealing any mortgage, liens, judgements, or unpaid takes on the property, and identifying any restrictions that may affect the sale of the property. Problems must be corrected before a buyer can receive a “clean title.”
3. WHAT DO I NEED TO BRING TO CLOSING?
   Your buyer’s rep will advise you, but typically must provide a cashier’s check for payment of the down payment and closing costs*, proof of homeowners insurance, and a photo ID.
4. WHAT HAPPENS AT CLOSING?
   You’ll sign many documents in front of a notary, including:
   –A settlement statement is a balance sheet detailing all funds changing hands between parties.
   –Mortgage papers that outline the terms of your legal obligations to repay the lender.
   –Any additional documents unique to your transaction or required in your state.
   Rely on your buyer’s rep and your attorney to review your closing documents and answer any questions.
   Possession is usually transferred after all documentation has been signed and all monies paid. You, then receive the keys to your home.
   After closing, the title company will ensure the county recorder’s office transfers the title.

*If you’re wiring funds for closing, beware of emails with last-minute changes to your payment or wiring instructions. They may be scams. Always confirm wire instructions using an independently obtained phone number for the title.