OVERVIEW OF A REAL ESTATE CLOSING
A closing is defined as “a meeting of all parties involved in a property transaction during which pertinent documents are signed and transferred, and funds are distributed.” Typically, it is handled by a closing agent, in this case an attorney from Garcia & Associates PL, and will last approximately one hour.
Garcia & Associates PL will begin preparation for your closing shortly after you sign your contract or formally commence refinance procedures with your lending institution. Ordinarily the first step is to request payoff information so our office may begin tracking down estopple letters and/or payoff statements from the person or entity presently holding a mortgage on the property our office is preparing to close. Moreover, our office will request any information regarding homeowners or condominium association dues and/or transfer fees. If a new mortgage is being obtained, the closing agent will work closely with the new lender to make sure that all of the lender’s closing requirements are met.
A title examination is conducted in order to verify the seller’s/borrower’s right to transfer ownership/refinance and to discover any outstanding mortgages, liens, restrictions, easements, etc., which may affect the property. Then, a title commitment will be issued which will show any matters reflected in the title examination, as well as a determination of the documents needed to properly transfer the title of the property to the buyer. Our office will also work closely with the lender and Realtors to coordinate the ordering of the termite inspection, survey, homeowner’s insurance and flood insurance (if applicable) and all other items necessary to effectuate your closing.
Once the lender receives all required documents from the buyer, the loan is approved, and the lender provides our office with the closing package, someone from our firm will contact you to schedule the date and time for the closing with all parties. The lender will prepare a closing package consisting of the loan closing instructions, fees charged in connection with the new loan, and any loan documents to be delivered to the closing agent. Then, our office will prepare all of the necessary closing documents, including a closing statement outlining all costs associated with the transfer of ownership as well as fees charged in connection with the new loan(s).
Copies of the closing statement are usually faxed to the lender and the real estate brokers (if any) for their approval. The buyer and/or sellers are also entitled to review the settlement statement prior to closing if requested. Once the final figures are approved by all the respective parties, the buyer must bring a Certified Check, Cashier’s Check, or Money Order to closing made payable in US currency to Garcia & Associates, PL (or arrange a wire transfer of US funds to the firm’s trust account) in the amount of whatever money is outstanding and required to close. This money is referred to as “cash-to-close.”
The closing typically takes place in our office. An attorney from Garcia & Associates PL, buyer, seller, and any real estate agents sit around a table together while the attorney explains the closing statement as well as other closing documents. When all of the documents have been executed, including the Warranty Deed, and the buyer has given the cashier’s check to the attorney, the seller receives his or her proceeds from the sale.
After the closing, our office will send the original Warranty Deed and mortgage to the county courthouse for recording. The completed loan package is sent to the lender. All remaining funds are disbursed according to the settlement statement, including outstanding mortgage payoffs. The owner’s and lender’s title policies are issued when the deed and mortgage are returned to our office after recording- ordinarily the owner will receive his/her title policy 2-3 months after closing