Closing Day Expectations

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Daphne on a Closing Day! The sellers had already moved, the buyers would get keys later that day.

Daphne on a Closing Day! The sellers had already moved, the buyers would get keys later that day.

Closing day is the day of the real estate transaction where the loan is funded and the deed records with the county. There are several duties that buyers and sellers have just prior to closing. Closing day may not be moving day, here is what you can expect on closing day as a home buyer or home seller.

Home Buyers:

  1. Signing loan documents, escrow documents, the new deed, and any other paperwork that goes along with the sale. This will happen at the office of the escrow company and can occur as soon as the loan documents are sent from the lender to escrow. This can occur on the day of closing, but we professionals prefer it happens a day or two prior to closing day. This appointment cannot be scheduled far in advance unless the buyer has very specific scheduling needs.

  2. Loan is funded from the lender to escrow, who then takes those funds and pays off the seller’s mortgage, real estate brokers, any liens on the property, and contractors hired during the sale.

  3. Recording the deed with the county. This means the house has sold officially!

Home Sellers:

  1. Signing the closing documents doesn’t need to wait for the lender, so sellers often sign several days prior to closing day.

  2. Final Goodbyes and Thank You to the house. This is your last chance to be at the property if you have already moved out.

  3. Escrow pays off the seller’s mortgage, real estate brokers, any liens on the property, and contractors hired during the sale. Proceeds of the sale (the seller’s net gain) is sent to the seller.

  4. Recording the deed with the county. This means the house has sold officially!

Possession and closing are different terms. Possession is who gets to “have” the property. In a simple transaction the seller has possession until the sale has recorded with the county, and as soon as it records the buyer then gets possession. I usually specify that buyer possession will occur at 5pm on the day of closing. Other terms can be negotiated, so sometimes the seller has possession of the property for a few days, or even weeks after closing. This is very common, and allows sellers to sell one house, and then buy their next house a day or week later, but only have to move once. It is very uncommon and not encouraged (by attorneys and insurance agents) for buyers to have possession of the house prior to closing.

Everything in real estate transactions can be negotiated, so tell me what you need and I’ll see if I can make it happen!