Residential real estate is a constantly changing world where markets are good and bad, and where buyers and sellers can turn from good to bad as is the case in any situation where money is involved. Once the tough negotiations are done you can relax, prepare for this newest chapter in your life, and wait for your closing date.
The Closing is Where it All Comes Together
The closing is the final step in executing a real estate transaction. It is here where papers are signed, titles are transferred, and keys and information are exchanged, along with large sums of money. Wait a minute! Why are you relaxing? This is heavy stuff! Are you equipped to handle this on your own or should you have a lawyer by your side? Let’s look ahead to see what you are facing, then you can make the right decision for you.
How a Closing Works
The closing is orchestrated by a title company which researches the chain of title to guarantee you a clear title of ownership. The title company also collects, manages and provides fee information and financial details so everyone is prepared and in agreement of all terms to which they are signing. A closing agent is then assigned to collect the money from both parties.
Transfer of Funds and Title
These amounts are estimated during negotiation and confirmed through the title company once closing documents are finalized. If a loan is involved the money is usually wire transferred from the buyer’s lending institution. This part can get hairy.
Sometimes the money does not make it to the title company in time which causes delays in possession and exchange of money. Don’t panic! This happens all the time. All terms and numbers remain the same. Whether at the end of that meeting or at an appointed time the next day, everyone gets their money and their keys and will be on their way.
Should You Have a Real Estate Attorney?
Not so bad, right? Unless you have a lawyer on staff or in the family, you probably don’t need to invest in one for a standard residential transaction. The best way to accomplish a successful transaction is to establish a working relationship with a real estate professional at the very start of your home buying process.
If that is not possible, align yourself with a local, reputed loan officer, and insist upon using a local, well known title company because if everyone involved is slanted toward the other guy, who is looking out for you?