Once you sign the deal, you’re on your way to buying or selling a home. However, several steps must occur for this transaction to be completed.
- Closing attorney (or title company) contacts seller’s current mortgage(s) to get package for paying off loan.
- If the deal is for a condo, approval of new buyer must be requested and received; maintenance payments must be current (or back payments included in the closing figures).
- Attorney (or title company) conducts a title search of the property, checking to be sure there are no liens or other title problems before the sale; title insurance protecting the buyer from potential title problems is obtained.
- If property is a house, a survey of boundaries is conducted
- Roof, termite and general inspection is conducted; (depending on the terms of the contract) problems detected must be fixed by seller before closing.
- Buyer obtains hazard (and if necessary, flood) insurance prior to closing.
- Attorney (or title company) prepares documents for the sale, including the deed, bill of sale, affidavits and other necessary papers. Attorney calculates prorated payments of mortgage, taxes, etc. for the date of sale.
- Just before closing, buyer conducts a “walk-through” of the property to be sure any problems detected during the inspection have been corrected.
- On the day of closing, buyer brings required funds in a cashier’s check. Buyer and seller sign required papers.
- The sale is complete. (Congratulations!)