What Happens at a Closing?
When the "Offer to Purchase Real Estate" was prepared, an amount of money was offered to the seller from the buyer for the purchase of the property. Several dates were written into the agreement including the date to complete the deal, or the closing. After the offer was accepted, the "Purchase and Sales Agreement" also included the accepted consideration or purchase price and date for "The Closing".
The closing frequently takes place in the office of the attorney representing the bank who provides the buyers mortgage, or the buyers attorney when it's a cash deal. It can also close in the office of a broker, a title insurance company, or an escrow agent.
Much of the time spent at the closing is going over the "Settlement Statement" of both buyer and seller and other paper work essential to the purchase. The settlement or HUD statements were given to both parties by law, several days prior for them to go over. At the conclusion of the closing, the buyer actually gives the balance of the consideration or purchase price, plus all previously submitted deposits held in escrow, to the seller and receives the deed to the property in return. Later that day, the deed is recorded in the County Registry of Deeds to complete all legal aspects of the purchase. Checks cannot be deposited or cashed until the deed is recorded.
Prior to the closing, it is customary for the buyer to have a "walk-through" of the property to be purchased to be sure it is in the condition agreed upon. dfk
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