What to Know When Closing Real Estate
Closing real estate property can be exciting and relieving. There are a lot of things that have to fall in place before closing can happen. Here are some things you might like to know.
Closing Date in a Real Estate Contract
The closing date is one often misunderstood because, in reality the date shown in a contract is essentially a target date rather than a firm deadline. Few contracts actually close on the exact date listed in the contract.
Banks traditionally begin with the projected date and work backward toward the goal of closing on or around that date – but a host of variables can affect the completion of a real estate transaction.
Flexibility is an important element of working through a real estate transaction because you won’t be sure of your actual closing date until days – or perhaps a week – before the closing takes place. You should not schedule movers until you receive an official closing date from the bank, the seller, and the buyer. That’s when you should take care of such items as utilities, final walkthroughs, movers, and insurance.
Preparation for Closing Real Estate
Once the property’s title has been examined and the bank has cleared the loan to close, the seller and buyer have certain responsibilities. The closing will be scheduled with the bank, the sellers, and the buyers, signaling the seller to make arrangements to fully vacate the house, leaving it in broom-clean condition, advise the utility companies of the transfer date and let them know others will take ownership of the house on that date.
The seller should also meet with their attorney and sign the transfer documents required to complete the transaction, but need not – and usually will not – attend the closing.
The buyer will call the utility companies and arrange for the transfer of utilities into their name and reach out to their realtor to schedule a final walkthrough a day or two before the closing date. This gives the buyer an opportunity to inspect the house, assuring himself that no changes – such as flood damage or broken items – have taken place since they entered into the contract.
Along with the final walkthrough and utility transfers, buyers will contact their lender to learn how much money they should bring to the closing to supplement their mortgage. Those funds will usually need to be in the form of a certified check.
Buyers will also obtain home owner’s insurance, naming themselves as an insured and the lender as an additional insured and, once all of these elements are complete, they will attend the closing.
If you have any questions about closing, contact Cole, Sorrentino, Hurley, Hewner & Gambino, P.C for experienced guidance.