Closing Day

Although closing details vary from area to area, there are three basic steps that are always taken. You, as the seller, prove you have marketable title, the buyer pays for the property, and you give the buyer a deed or bill of sale. Settlement usually takes place in less than an hour.

Specifically, you sign the settlement papers and the deed. The buyer signs the settlement papers and mortgage note.

All payments by you and the buyer are detailed on standard federal settlement forms. You pay for your closing costs and the buyer pays whatever is owed on the down payment plus the buyer’s closing costs.

You receive, either now or shortly after closing, any money kept in escrow for taxes and insurance and unused prepaid items, such as insurance. Disbursement of funds may be at settlement or within 7-10 working days, depending on local custom.

When all papers are signed and cheques have changed hands, the buyer receives your keys. Your house is sold and the transaction officially settled when the papers are recorded.