Thursday, July 8, 2010

What is a Real Estate “Closing”?

So the time is near you are set to close your house or the land you purchased to build your new dream home. Just what does closing mean? Closing is the term given to a process the buyers and sellers go through to exchange title deeds and property.

The process began when you first wrote the purchase and sales agreement with your Realtor. You the buyer chose the Title Company to represent you in the transfer of money to deed of purchase. The title company is the keeper of the money and documents. In the end, the title company has the obligation to research the property and make sure the fiduciary duties are taken care of and the property is free and clear for sale.

Closing means that you are ready to sign the documents to make the real estate transfer. Signing does not necessarily mean that you get to move in to your purchase or begin the building process of the dream home. It depends upon the loan or mortgage funding. If cash was paid it could fund and record the same day. When a loan is being use to secure the property, the mortgage holder will review the signed documents and make sure everything is in order. After this process the bank or lender will issue a fund order to the title company. The title officer then pays the bills and transfers the money completing the sale. Then the title officer will send documents for recording in the County the property is located. You now get your keys.

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