Current Residential Real Estate Closing Procedure – Harvey Gilbert, Esq.
Current residential real estate closing procedure…..
The purchase and sale of residential real property expects to encounter a realtor who initiates an introduction of the parties and when appropriate prepares a sales contract when the parties are in agreement as to the major terms. Then the contract goes to a lawyer for each side who will review the terms and advise his client as to the application of the basic terms to their respective unique circumstance. The attorney may change the terms of the deal refining the arrangement to suit his client’s needs. After attorney review, the buyer is usually permitted to inspect the property by engaging a professional home inspector. Any deficiency can be adjusted between the buyer and seller or either party can terminate the transaction.
Once the contract is ready to proceed, the buyer seeks to satisfy a usual condition in his contract by obtaining a written mortgage loan commitment developed by the buyer’s chosen lender. The buyer’s attorney has commissioned a full search of any liens on the property or restrictions on the use of the property as well as any judgments which may have been recorded against the seller or the buyer. The buyer’s attorney relies on a title company to produce a search of all records affecting the title, the taxes or liens showing amounts due against the realty. They will paid off in full from sale proceeds at closing.
The lender issues a loan commitment and title company issues a title insurance commitment to insure title to the new owner and his lender. The town is asked to inspect the premises and issue a certificate of occupancy showing that the required smoke and carbon dioxide detectors are in their proper place.
The attorneys, the title company, and the lender cooperate to produce a legally required closing disclosure statement which captures all transaction expenses for the parties and sets forth in straightforward language what is being charged and for what service and totals these expenses so that the buyer can see clearly what he is buying and at what expense. Efforts are made to remove all surprises from these transactions. The paperwork to secure the lender on its loan to the buyer as well as giving the title from the seller to the buyer are handled at the closing table. Money is passed and the keys are delivered. All open accounts are satisfied and closed. The process usually takes between 60 and 90 days once the contract is presented to the seller by a willing buyer. The single most important purchase in a person’s life involves the support and hard work of many services cooperating to get the transaction concluded.
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