Finally, you are the final stage. You’ve found a buyer, agreed on a price and in due time, you’ll be handing the keys to its new owner.
Closing the deal is both magical and stressful. When the day arrives, a lot of things could happen. That’s why it’s important to be well equipped before your big moment happens.
Just as we have been guiding you through this entire process, today we’re going to tell you more about closing your sale — what happens, what you need and what you should prepare for.
Ready? Let’s begin.
WHAT HAPPENS DURING CLOSING?
The process is simply turning over your property to the owner, making it legally theirs. Closing varies from one location to the next. Typically, the people present during the deal are the seller, buyer, an attorney and a title company representative. Since you are not transacting with a real estate agent, there will be no need for one. If there are lenders involved, they will also be present. However, others just hand the loan documents to the title company representative.
Once the closing is signed and sealed, the buyer must now possess the keys to the property, along with a generous stack of papers.
Many independent sellers tend to think that closing is going to be as complicated as deciphering codes. However if you have basic knowledge of how real estate works (and you’ve gone through each steps of our guide), there’s nothing to demystify.
HOW DO YOU PREPARE FOR CLOSING?
Having the necessary papers ready is essential what prepares you for closing the sale. By this time, you should have completed all repairs and inspections. Remember that throughout these steps, your buyer should be involved.
Sometimes, the buyer takes a final walk through of the property 24 hours before the closing. At this point, you should have removed everything that is not part of the contract, like your personal belongings. Items inclusive of the deal should remain in the property, such as appliances and HVAC systems.
In the event the buyer’s inspection reveals problems, you should be ready to renegotiate the offer, reflective of the repair costs. Whether it’s going to be shouldered by you or the buyer, it depends on what both parties will agree upon.
WHAT WILL YOU NEED?
There are times when independent home sellers hire professional closers. It makes the entire process more bearable and manageable. However, it’s not necessary. If you want to save costs and enjoy the fruit of your hard labor in the end, then DIY is the way to go.
Here are some of the basic requirements when closing the deal:
PURCHASE AND SALE AGREEMENT
Plenty of real estate agents bombard sellers and buyers a very long template of this contract. The truth is this agreement, being the most essential one, can be summed up into one page. It should simply lay out the terms of sale, which include:
Date of: Agreement, when it expires and when the transaction must be closed.
– Purchase price of the property as well as how the price will be paid to the seller (cash, check, transfer, etc)
– State, country, and other legal descriptions of the property to be sold
– Name and signature of seller and buyer. At times, a third party will witness the signatures.
– Details as to how parties are to pay closings costs (repair costs, property taxes, recording fees, etc.)
– Details as to how seller will convey the title to buyer (warranty deed, quit claim deed, etc.)
A title search gives both sellers and buyers the peace of mind that no one is going to claim their property as their own. Whether it’s a disgruntled relative left out of a will or a tax collector who wasn’t paid, have a title officer clear the clouds.
Other seasoned sellers do their own title search. If you are not sure how to start doing your won search, it is best to hire a title company to do the work for you. Take this time to learn from the title searcher so when the time comes you’re going to sell another property, you can do it on your own.
This is not a requirement but it could be a vital document that will protect you in case of courtroom situations. Consider the disclosure statement as a chance to put everything in writing — that the buyer is familiar with the property’s current state, that the buyer is fully aware of previous and current repairs, that the buyer is releasing you of all liability in the transaction.
The deed is the most critical document in the entire real estate transaction. After the transfer of ownership, whose ever name is written on the deed is legally the owner of the property.
Before the deed is signed and notarized, it should be the final document. It will also be recorded in the Register of Deeds in your area. The following details found in a deed are:
– Owner’s entitlement to the property
– Property rights from one person to another
– Ownership of the real estate property in accordance with its local governing body.
Remember, you need to have a copy of every document that involves the closing process. You want to protect yourself from any unforeseen circumstances that may cost you a lot of money or worse, a court hearing.
Finally! You’ve reached the end of this guide. If you are now trying to list your property online, check out our listing packages here.