Closing
The last aspect of the real estate transaction is closing, where buyers and sellers legally transfer ownership of the house.
Before Closing
Prior to closing, it is customary for buyers to complete a final walk through, enabling them to inspect the house, ensuring that you've completed all repairs agreed to in the contract and that the house is in the same condition as when they decided to make an offer.
Closing Day
On the actual closing day, numerous documents will be presented and signed. Generally, here's how the process works: The buyer provides proof to the lender that a homeowner's insurance policy has been obtained. The closing agent reviews the HUD-1 settlement statement (a universally used federal form for itemizing costs associated with purchasing a home) with the buyer and seller to verify that the agreed upon dollar amounts have been entered. (Tip: Ask the attorney to view the HUD-1 statement prior to closing and verify its accuracy and avoid delays on the actual closing day.) Both parties sign the form.
Both parties provide certified checks for payment of their respective portions of the closing costs. The lender reviews all documents with the buyer and s/he signs to accept the terms. The lender provides the seller's agent with a check to cover the mortgage amount. The seller signs a title deed and gives it to the buyer. Finally, the keys are presented and the escrow/closing company, attorney, or title company that will record the sale receives copies of the appropriate paperwork.
The buyer legally becomes the owner of the house.
