What is a Real Estate Closing?
The closing date is set during the negotiation phase, and is usually several
weeks after the offer is formally accepted. On the closing date, the parties
consummate the purchase contract, and ownership of the property is transferred
to the buyer. In most jurisdictions ownership is officially transferred when
the contract is registered at the office
of the County Recorder of the county in which the property is located. Several things that happen during closing:
- The buyer (or his bank) delivers a check (generally in the US, a
cashier's check or wire transfer) for the balance owed on the
purchase price.
- The seller signs the deed over to the buyer, and gives him the keys
- A title company, lawyer or civil law notary registers the new deed with the local
land registry office.
- The seller receives a check for the proceeds of the sale, less closing costs and mortgage
payouts.
Settlement usually takes place on a specified date and time during which all parties meet
at a settlement company presided over or supervised by a lawyer or settlement agent. At which
time, the settlement agent disburses all funds listed on the settlement statement and the property takes place,
and the deed is then recorded by the company.