What Happens at Closing?

The "closing" is one of the final steps in the process of buying/selling or refinancing a home. It is when all parties involved, including the buyer and seller, meet to finalize the transaction and where purchase money and ownership documents, including the conveyance deed exchange hands. The closing can only take place once all the conditions of the real estate contract and the lender’s requirements have been met

The location of the closing is typically at the title company's (also known as the Settlement Agent) office. The Title Company will coordinate who should be there and at what time. If you are unsure about directions to the place of closing, do not hesitate to call the title company, Mizner Title & Escrow, or view and print out driving directions. Most people are already a little nervous about the closing and the last thing you need is to get lost on your way. Depending on your geographical area, all parties may or may not be present at the same time in a closing. The seller may sign all his/her documents at a different time than the buyer. This is known as an "Escrow Closing." In an Escrow Closing the Seller may or may not receive his proceeds check on the same day. The other type of closing is when all parties are present at the same time. This is known as a "Round Table Closing." In this type of closing, the seller will receive his/her proceeds at the closing (table funding). Regardless of the type of closing, the documents signed will all be the same. Immediately following lists documents the seller and buyer can expect to sign at closing.

When you arrive at the closing you will be greeted by your Settlement Agent at Mizner Title & Escrow, Catharina B. Van Kleeck, and offered refreshments. Your Settlement Agent is the one who will collect all the funds involved, including money due from buyer and the funds from the new lender. You will then be directed to a "Closing Room" where she will explain each document to you, including a breakdown of all closing costs, also known as the HUD1 Settlement Statement. The HUD1 Settlement Statement also sets forth the net proceeds amount due to seller and the amount of funds needed to close by buyer. The buyer should never bring a personal check to the closing. It is customary for the "Closing Processor", Michelle Lynch, to let the buyer know ahead of time how much is needed at the closing so that he/she may bring a Cashier’s check. Never sign a document that you do not understand. Do not hesitate to ask the Settlement Agent to again describe what the document means. Considering that she closes real estate transactions often, she is used to explaining documents throughly, so you should not feel embarrassed about asking. If you are at a Round Table Closing, generally the seller's will sign their documents first. The Settlement Agent will then witness and notarize various documents and ask you for your driver's license or passport. You must bring photo id with you to the closing. Once all the documents are signed, the seller along with other parties due money from the transaction will receive his/her check. The title company is funded by the buyer's new lender once all the documents are signed. The buyer and seller will exchange keys to the property or arrangements will be made to do this at a later date. The Realtor may at this time provide information for changing utilities into the new buyer's name and other details relating to the sale may be settled at this time to, such as arranging the removal of items from the house by the seller. Please view our Buyers Closing Guide and Sellers Closing Guide for helpful phone numbers and information. Sometimes it is necessary for the Seller to remain in the house for awhile after the sale. If this is the case, generally a "leaseback" agreement is negotiated at this time. Once all the above steps are finished, your closing is complete! The Settlement Agent will now record the conveyance deed and/or the new mortgage with the county recorder for public record. The buyer should receive his/her’s owner policy and recorded deed in a few weeks, and at the closing a copy of everything signed will be provided. The seller will also be presented with a copy of everything signed.