Real Estate Term of the Day: Closing, Closing Agent & Closing Date
CLOSING – the act of transferring ownership of a property from seller to buyer in accordance with a sales contract. The time when a closing takes place (Barron’s Dictionary of Real Estate Terms)
CLOSING AGENT – a third party (agent the works for a title company) who prepares the paperwork and often conducts the closing (Barron’s Dictionary of Real Estate Terms)
CLOSING DATE – the date on which seller delivers the deed and the buyer pays for the property. (Barron’s Dictionary of Real Estate Terms)
The closing is attended by the buyer(s), seller(s), the buyer’s agent/broker, the seller’s agent/broker and the buyer’s lender. The closing will typically begin with introductions and the closing agent gathering photo identifications. After that they will start with the sellers and buyers signing all of the real estate documents needed to transfer the home. After that, the closing agent will go through the documents the buyers need to sign (if obtaining a loan). Once all of the documents have been signed, the closer will then submit the necessary items to the lender so that the funds can be sent (if obtaining a loan). The closer will return once everything has been completed with copies of the signed documents for each party.
The typical closing takes about an hour if the buyer is using financing to purchase the home. If there is no financing involved, the closing will generally take less than 30 minutes. The closing offers a great opportunity for the buyers and sellers to speak with each other and convey important last minute items such as the trash schedule, mail box location, etc.
Land Title a local title company in Metro Denver offers a great informational piece called “What To Expect at Closing.”
Don’t let the closing be intimidating! You are always encouraged to ask as many questions. Be sure you understand what you are signing before you sign it. If you want to read through all of the documents you will be signing at the closing, request these documents from your real estate agent or closing agent 2-3 days before the closing.