A real estate closing, often referred to as "settlement," marks the culminating point where property ownership is formally transitioned from the seller to the buyer. This essential meeting brings together the buyer, seller, their respective legal representatives, real estate professionals involved in the sale, a lender's representative, and the closing agent. During this process, any unresolved matters are addressed, the intricate details of the closing statement are validated, and all requisite documents are signed to finalize the property transaction.

Engaging an attorney seasoned in real estate closings is crucial. They will guide you through the process, ensuring that your rights remain safeguarded at every step of this pivotal transaction.

Closing Costs

Closing costs can often be a mystifying component of the home buying process. While seasoned closing agents will guide buyers through these expenses, the expertise of an attorney from AWA Law Firm can offer deeper clarity. Our team ensures that these costs are fairly distributed between both the buyer and seller.

Though closing costs can vary based on locale, they typically range from two to five percent of the property's purchase price. These costs can encompass:

• Legal representation fees
• Escrow charges
• Pro-rated property taxes and HOA up to the closing date
• Interest spanning from the closing date up to one month prior to the first payment
• Fees for initiating the loan
• Charges for recording the transaction
• Fees for property surveying
• Mortgage insurance, if required
• Title insurance for both the purchaser and the loan provider
• Points to reduce the loan interest rate
• The inaugural escrow contribution towards impending real estate taxes and insurance
• Payment or documentation for homeowner's insurance
• Charges for property valuation (appraisal)
• Fees for specific inspections, including pest assessments
• Charges for preparing necessary documents

With AWA Law Firm by your side, you can navigate these costs with confidence, ensuring a transparent and fair real estate transaction.

What Happens At Closing?

During the closing phase, it's customary for the buyer to present either their paid homeowner's insurance policy or a binder accompanied by a receipt indicating the premium has been settled. The closing agent will then delineate the sums owed by the buyer to the seller and vice versa. The seller ensures delivery of any items mandated by the contract. After both parties affirm the accuracy of the financial details, several documents come into play:

• The parties endorse the closing statement.
• The buyer puts their signature on the mortgage note and the mortgage document.
• The seller grants the buyer the property's title through a signed deed.

Typically, the buyer settles all closing costs with the closing agent. During this process, the closing agent presents the buyer with a detailed statement itemizing all financial elements of the deal. To complete the process, the closing agent promptly registers the deed and mortgage with the County records completing the transfer of the property. 

Items The Buyer Receives

At the culmination of a real estate transaction, a buyer can expect to receive the following documents and items, ensuring transparency and adherence to legal standards:

• Settlement Statement: A detailed breakdown of services rendered and the associated costs.
• Truth-in-Lending Statement: An official document outlining the terms of the loan and the costs of borrowing.
• Mortgage Note: A promise to repay the loan amount under stipulated terms.
• Deed of Trust: Legal documentation securing the loan with the property as collateral.
• Sales Contract: The finalized agreement detailing the terms of the property sale.
• Affidavits (if applicable): Any sworn written statements or declarations.
• Copy of the Deed: An official document proving property ownership.
• Home Keys: The tangible step into your new property.

Speak To Our Real Estate Lawyers

The closing process can be swift and intense, with both parties often engaging in discussions, and occasionally differing opinions, about the financial aspects. Remember, these figures represent your valuable investment and hard-earned funds.