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There are some sales that go smoothly and some that require a lot of work to get to the closing table. Until you get into it, you won't know which one you have on your hands. In either case, there is still work to be done.
Once the final terms have been agreed upon, it is time to prepare to close the deal. This is most often done by a title company, but a licensed attorney can also close a real estate transaction. For this discussion, we will assume that you are closing with a title company.
The title company will order a
title commitment
. This is a document that will show the condition of the title. If there are any clouds on the title, they will need to be cleared. Clouds usually show up as liens against the property, encroachments into easements or other properties or ownership issues if a seller has had a marriage or divorce since owning the property.
Your REALTOR®will also prepare you in advance for the process of the closing, advising you of any documents you will need to bring to closing, how much time to block off, and any other information that is needed for closing. You will probably also hear from the closing officer to make sure that the title company is sure you will have everything you need at the closing. Don't forget to bring the keys, garage door openers, etc. to closing or to arrange for them to get to the buyer.
Leading up to closing, it is very helpful and smart for the seller to provide all utility information to the buyer. It is also wise to coordinate, through both sides' REALTORS®, the transfer of electricity, gas and water. And don't forget to terminate or transfer to your new home telephone, cable, newspaper and other services not vital to the house that you're selling.
Prior to closing the buyer will probably ask to walk through the house. This is done to make sure it is vacant, clean and to visually inspect that any repairs have been done. You may be asked to have the house professionally cleaned. Even if not asked, this is a wise and courteous thing to do.
"Closing" refers to the meeting where ownership of the property is legally transferred to the buyer. Your real estate REALTOR®may be present during the closing, but it is the closing officer’s job to help explain the process and forms to you and make sure everything goes as planned.
Prior to the day of closing you will receive an estimated settlement statement, commonly referred to as the HUD. This is a form that will show the breakdown of charges, fees, etc. and will show what proceeds the seller will receive and what the buyers will pay.
The sellers and buyers may choose to be at the closing at the same time or at different times. This often depends on how smoothly the transaction has gone to date. Closing can also be done from a distance. Documents can be overnighted to parties out of the area for signature.
If an out of area buyer or seller has someone working on their behalf locally, a power of attorney may be used. The power of attorney document will need to be approved by the title company. If closing happens via overnight document, funds can be wire transferred.
As the seller, you will need to be prepared to give over any necessary documentation regarding the property and, depending on the arrangements made during negotiations, you may be required to have done something specific in order to close.
Be sure to read all the documents and ask any questions you may have. It is important that you understand every document you are signing.
Hopefully, everything went smoothly and you will be vacating your house in the time frame that you had anticipated. Your REALTOR® will help you create a checklist of all the things you will need to do to turn the property over to the new owners.
Of course there is more to the process of selling a house than what has been covered here, but this has been a good review. Don't forget that your REALTOR® works for you. He should keep you well informed all along the way.
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