The Mystery Behind A Real Estate Closing Revealed

When you buy or sell a house, you will hear the words “at closing” used by almost everyone involved with the home sale. You’ll be told how much money you need to bring, which forms you must sign, and other transactional items that will all happen “at closing.” In reality, closing refers to the whole process of buying a property. During the home-buying process, most people refer to closing as the time when you go to the attorney’s office to sign a significant amount of closing paperwork. (Although this is simply some bonus information for you, it is called the “settlement date.”)

A real estate transaction is not done in a vacuum, meaning several parties have put in a significant amount of time and effort to get this deal to go through. For instance, your lender works diligently to ensure your loan can close. That means underwriters are examining the information you provided to verify that you can afford to repay it. 

Your real estate attorney will review the title to ensure that the people selling the property can deliver a clean title. In other words, the current owners can legally convey the home to you, and there are no creditors with liens on the property. If there are issues, your attorney contacts the seller’s legal counsel to resolve any title defects. If these defects cannot be resolved, then the whole process gets delayed until they are.

Taking Due Diligence 

The buyer will undertake their due diligence regarding the closing process rather than the settlement date. Although “due diligence” refers to the fee that the buyer pays to get the right to check out/inspect the property, there are several things that happen during this time:

  • Inspections 
  • Surveys
  • Reviewing the property for any repairs that either need to be done or the buyer wants to be done

At Thomas and Webber Law at the Lake, we advise our clients to take this process seriously. Buying a home is one of the most significant financial decisions of your life, and the due diligence period enables you to spend time and verify that this property is the right one for you and your family. 

Bring on the Paperwork 

However, if your attorney and your lender are ready to proceed, both the buyer and the seller will sign the closing paperwork. Sellers will have to sign the following:

  • The deed
  • The lien waiver 
  • A marital status affidavit
  • The non-foreign affidavit 
  • Any appropriate tax paperwork

The buyer will have to sign any paperwork required by their lender. When everything has been signed, the closing attorney’s office ensures that the money for the sale has been wired to them. Now the deed can be recorded. This is great for everyone involved because the buyer now owns the home. Additionally, the seller, realtors, and attorneys get paid. 

Get in Touch with a Lake Normal Real Estate Attorney 

Remember, the closing process can be long, and there will be issues to navigate along the way. In addition to supporting and advising you throughout the process, we will perform title searches, record deeds, gather all necessary paperwork, and handle any other task that needs to be done before the settlement date. Let’s get you to the closing table! Schedule a consultation with us today.

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Thomas & Webber Law at the Lake

Our entire legal team is committed to providing you with first-class service and a knowledgeable, professional guiding hand to help you during your real estate closing.

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