Closing day marks the formal transfer of your property to the buyer. This important day involves fulfilling the agreements outlined in your contracts, including the transfer of ownership, paying off any remaining mortgages, and receiving proceeds from the sale.
Completing Your Home Sale
On closing day, several key legal and financial transactions take place:
-
Transfer Ownership: You’ll officially transfer the ownership of your property to the buyer.
-
Pay Off Mortgages: Any mortgages tied to the property will be paid off.
-
Receive Proceeds: You'll receive the proceeds from the sale after any closing costs are deducted.
You'll need to sign several legal documents during this process. Don’t hesitate to ask questions if any language seems unclear. Ensuring everything runs smoothly is especially important if you plan to use the sales proceeds for your next home purchase.
Where and How Closing Happens
Closing typically occurs at the office of the title insurance company or lender’s attorney, but this can vary. In some cases, you may not need to attend the closing in person. Pre-signing the deed and other important documents is often an option, depending on your jurisdiction. The title company will provide you with specific details about your closing process.
Prepare Your Home for the Final Walk-Through
The buyer is entitled to a final walk-through of the property 24 hours before closing. This inspection ensures that you have vacated the property and that the home is in the condition described in the contract, including any agreed-upon repairs.
If the buyer finds any issues during the walk-through, they might delay the closing or request compensation to address the problems. To avoid any potential issues or delays, work closely with your real estate agent to ensure your home is exactly as promised.
Completing the sale of your home is a significant milestone. By staying informed and prepared, you can help ensure that closing day goes as smoothly as possible.