Are you wondering what usually happens in a real estate closing? Well, read on!
WHAT A REAL ESTATE CLOSING IS
Before we explain what happens in this process, let us first understand what it is. A real Estate Closing is the final step of financing and purchasing a property. On this closing day, ownership is transferred from the seller to the buyer. It is, therefore, a very critical stage in the property ownership process. Here is what usually happens on the real estate closing day
A TITLE SEARCH
The first thing that usually happens during the closing day is that the attorney involved in the process has to conduct a title search which includes a thorough search to investigate whether there is any legal issue on the property that might inhibit you from owning the property. This is like doing a full history report and ascertaining all important elements of the property, such as investigating if the person selling you the property has the right of ownership and selling the property. There is also the checking of whether there are any property restrictions that the buyer needs to know before closing.
APPRAISAL AND INSPECTION
An appraisal is especially critical when purchasing a house with a lender. This is usually done to ascertain that the property’s value is actually what you intend to pay. This is usually followed by an inspection process that involves rechecking and re-ascertaining the property’s conditions. This is usually a chance for the buyer to ask the seller to conduct repairs if necessary.
GET A SURVEY OF THE PROPERTY
This is usually important to understand the boundaries lines of the property and ensure that there is nothing that affects the property.
ASCERTAINING THE IMAGE OF THE PROPERTY
It is usually important to see the property’s visual reference to ensure that what is in the paper is actually what the seller is buying. This is important in ensuring that one buys what they think they are buying. The criticality of this comes with the fact that what is signed and finalized in the official closing documents will be what will be considered sold rather than what the seller was shown during the initial purchasing process. As such, confirmation of the official visual documents in the survey report is very important.
PREPARATION AND THE SIGNING OF THE OFFICIAL CLOSING DOCUMENT
THIS IS THE STAGE THAT THE LONG LIST OF OFFICIAL DOCUMENTS THAT BOTH THE SELLER AND THE BUYERS NEED TO SIGN TO INITIATE AND COMPLETE THE REAL ESTATE CLOSING PROCESS IS PREPARED AND ASCERTAINED. THESE DOCUMENTS WILL BE SENT AND RECORDED WITH THE REGISTER OF DEEDS TO LEGALIZE THE PROCESS.
AS IT IS EVIDENT, THE REAL ESTATE CLOSING PROCESS IS VERY IMPORTANT AND CRITICAL. ANY MISTAKE AND LACK OF KEENNESS MIGHT GIVE WAY TO CATASTROPHIC FINANCIAL HEARTBREAKS AND UNNECESSARY LEGAL ISSUES THAT WILL TAKE TIME TO SETTLE. TO GET IT RIGHT THE FIRST TIME, ONE MUST BE VERY KEEN THROUGHOUT THE PROCESS. THIS IS WHY THE ATTORNEYS FROM THE SAMUEL JOHNSON & ASSOCIATES LAW FIRM HAVE A WHOLE DEPARTMENT SPECIALIZING IN THIS ISSUE.