What Happens at the Closing
Some of the major elements of what occurs at the closing
have been outlined a moment ago in this article. There are,
indeed, a number of things that occur at the time of closing.
First and foremost -- and as has been noted a moment ago
-- the buyer provides the seller with the money that is
due and owing to the seller pursuant to the terms and conditions
of the contract for sale of real estate.
This money is provided to the seller normally in two forms
First, the down payment that was provided at the time the
contract for sale was executed is released from escrow.
Additionally, the proceeds from the home mortgage loan that
the buyer has obtained is paid to the seller in the form
of a bank draft, certified check or some other form of certified
(guaranteed) funds draft.
Certain taxes will also be paid at this juncture. In most
instances, the seller will be responsible for paying some
taxes that are due and owing and the buyer will be responsible
for the payment of some of the taxes. (Agreements between
the parties can vary in this regard.)
Other costs and fees associated with the real estate purchase
will also be paid at this juncture. This will include such
items as the appraisal fee, inspection fees and the premium
for title insurance.
Once all of the fees have been dealt with, and following
the payment of the purchase price to the seller by the buyer,
the deed or title to the real estate is then signed over
to the buyer.
In most instances, the buyer and seller are present at
the closing along with a real estate agent and in some instances
an attorney or a representative of the lender. There are
variations from situation to situation as to who might be
at the closing in addition to the buyer and seller.
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