What is Closing in Real Estate

You must have done a thorough research forcompletely adhered to and plays an unbiased role in
selecting your dream house. Now you are all set tothe entire transaction. The entire process requires the
own the house. The last step in the entire transactionseller and the buyer to sign legal documents pertaining
of purchasing house is known as closing. In closing allto the sale of the property. In the end the ownership of
the documents and agreements related to propertythe house is legally transferred to the buyer and the
are signed by the seller and the buyer. In short theentire transaction is legally documented. The buyer
ownership of the property is legally transferred frompays the seller the amount mentioned in the deal.
the seller to the buyer.The buyer also pays for the title insurance. Title
There are few things that the buyer should take careinsurance covers him from any title dispute with the
of before the day of the closing process. You shouldthird party in the future. The title company provides the
gather all the necessary paper works that you havebuyer with information about any recent legal dispute
received during your home purchasing process like theon the property and any penalty on the house for non
title search proof, contract papers, home inspectionpayment of the taxes before closing. This information
report, mortgage insurance papers etc. You mighthelps the buyer to know if the property title is clean
need them for reference at closing. Also read theand any taxes dues on the property so that he does
agreement documents carefully so that if you want tonot have any legal problems later.
make any changes in them you can do them now.During closing the seller also hands over other relevant
Once the agreement is signed by both parties then thedocuments of the property like the insurance papers,
ownership of the property will be transferred to you.title evidence, and property tax receipts to the buyer.
Also most of the agreements have the provision ofAnd the buyer pays the seller for any miscellaneous
home inspection 24 hours prior to closing. You shouldexpense that has been previously agreed upon for
avail this opportunity to see that the house is vacatedexample any furniture or appliances that the buyer
by the seller and its condition is as specified in thewants to retain in the house, any prepaid real estate
agreement. If you do not find it as expected or astaxes that has been paid by the seller and sometimes
specified in the agreement then you can postpone thefor the repairs that the seller was asked to do by the
closing process till your requirement is met.buyer.
Apart from the seller and buyer the closing meeting willAt closing the buyer also pays commission to the real
also have the presence of a closing officer, real estateestate agent for his services. In the end all the legal
agents, representative of the title company and theformalities are performed and recorded. And the buyer
lender. The closing officer ensures that the all the legalreceives the home keys.
formalities pertaining to the sale of property is