What is a Real Estate Closing?
A real estate closing, also known as settlement or escrow, is the final step in the home buying process. It’s the legal process where the seller transfers ownership of the property to the buyer. At the closing, the buyer pays the remaining balance of the purchase price. After the purchase price has been paid, the seller transfers the property title and other documents to the buyer.
Preparation for the Closing
Before the closing, the buyer and seller’s attorneys or real estate agents prepare a settlement statement, also known as a closing disclosure (CD) or HUD. The settlement statement outlines all the fees and costs associated with the transaction, including the purchase price, closing costs, and any other expenses that need to be paid at the closing.
The settlement statement must be reviewed and approved by both the buyer and seller before the closing. Any discrepancies or errors must be corrected before the closing date.
The Day of the Closing
On the day of the closing, the buyer, seller, real estate agents, and closing attorney gather at a designated location, typically an attorney’s office. The buyer typically bring a certified check or sends a wire transfer to cover the remaining balance of the purchase price and closing costs.
During the closing, the buyer and seller sign numerous documents. These documents include the settlement statement, the deed, and the mortgage note. The settlement statement will be reviewed and verified, and any adjustments or corrections will be made.
Once all the necessary documents have been signed and the funds have been transferred, the closing attorney records the new deed with the county recorder’s office. This recording officially transfers ownership of the property from the seller to the buyer.
After the Closing
After the closing, the buyer receives the keys to the property and the seller receives the proceeds from the sale. The buyer typically receives a copy of all the signed documents, including the deed, mortgage note, and settlement statement.
Conclusion
In summary, a real estate closing in Alabama is a complex process that involves numerous parties and documents. Understanding what happens at a real estate closing can help ease the stress and ensure a smooth transaction. Working with an experienced real estate agent and attorney will also help ensure that all the necessary steps are taken and that any issues or discrepancies are resolved before the closing.
The above is not legal advice. Should you need advice on a real estate closing or would like to use Chris Baldwin Law for your next closing, schedule your FREE Consultation by clicking HERE or contact us by calling 334-863-4555.
