You’ve made an offer on your first home and it’s been accepted. You’ve started planning your move and your agent has given you a date for “closing.” What does that mean and what should you expect at that meeting?
What Is a Real Estate Closing?
Real estate transactions are, by their nature, highly complex and document-driven. In addition to the buy-sell agreement, which sets forth the obligations of both parties, you’ll have a mortgage (unless you pay cash), a note, title documents, a deed and perhaps an easement or restrictive covenant. The closing brings all the parties together at the same time, so that all contingencies can be immediately addressed and resolved. There’s a simultaneous exchange of documents, so that all parties’ interests are protected.
The closing will typically take place at either a title office or at the office of one of the real estate agents involved in the transaction. All documents required to complete the transaction will be part of the closing package and the parties will sign those documents in the presence of a notary. The seller will receive a check for the purchase price less any amount still owed on a mortgage, as well as any other obligations the seller has agreed to pay. The buyer will receive the deed to the property, though the buyer’s lender may have a lien on that deed.
As a general rule, a closing or settlement statement is prepared in advance, identifying what funds will be exchanged and who will receive what. You should have the opportunity to review the closing statement in advance, so that any discrepancies can be resolved before the closing.
Contact Our Office
At Barnard, Mezzanotte, Pinnie, Seelaus & Kraft LLP, we have provided thorough and effective legal counsel to clients throughout Delaware County in Pennsylvania since 1980. We offer a free initial consultation. To schedule an appointment, call us at 610-565-4055 or 302-594-4535 or contact us online.