Real Estate Closing

The "closing" is the final meeting that typically occurs at the escrow agent's office. In most states, an attorney or a title company agent normally will conduct closings.

All contingencies will have been satisfied by the time this final stage is reached. Buyer and Seller both attend the meeting, along with loan agents, any real estate agents, and any other parties with a financial interest. Buyer presents a paid homeowner's insurance policy or a binder and receipt showing that the premium has been paid (the closing agent will most often obtain the verification for you). Numerous documents are signed, including loan documents.

You should take time to check over these papers to make sure everything is correct prior to signing. The escrow agent will explain each document and answer any questions you may have. A list of all monies to be exchanged is distributed, the money is exchanged, and ownership of the property is transferred. The Seller will give the Buyer the keys to the property. "Closing costs" are paid at closing or financed into your mortgage. For the Seller, they normally consist of at least the following:

• Any pro-rated real estate taxes to be paid for the time seller owned the property.
• Any pro-rated storm drain dues (usually nominal fee).
• Any pro-rated Home Owner's Association fees for the time the seller owned the property.
• Attorney fees (usually between $100-$400).
• Recording costs for the Title (usually between $50-$100)
• Payoff fee for existing mortgages (usually between $100 - $150 per mortgage.
• Deed recording fee (usually $50).
• Grantor's tax (0.1% of the sales price).
• Termite and moisture home inspection (usually between $45-$65).

The "settlement statement" is a document that will be provided by the escrow agent/closing attorney. The settlement statement is a listing of every amount and every item paid by the Buyer and Seller, the distributions of those funds, and the remaining cash that should go to the Seller. The settlement statement often refers to the Buyer as the "Borrower" because the Buyer is the one taking out a real estate mortgage.

The escrow agent/closing attorney will explain the settlement statement in detail, and you can request a copy prior to closing in order to familiarize yourself with the document.