When a buyer and seller come to an agreement in a real estate contract, there are certain terms that need to be carried out in order for the transaction to be complete. One way that the buyer fulfills these terms is through the process of closing.
Closing is the final step in a real estate transaction. It is the process by which the buyer takes possession of the property and pays the seller for it. There are several steps involved in closing, including the following:
1. Title search and insurance. Before the buyer can take possession of the property, they need to make sure that the title is clear and free of any liens or other issues. A title search will be done to determine the ownership of the property and any outstanding claims against it. Title insurance will also be purchased to protect the buyer in case any issues arise later.
2. Home inspection. The buyer will typically have a home inspection done to check for any major issues with the property. This can include things like structural issues, electrical or plumbing problems, or other issues that could impact the value of the property.
3. Appraisal. The lender will typically require an appraisal to be done to determine the value of the property. This ensures that the buyer is not overpaying for the property and that the lender is not lending more than the property is worth.
4. Final walkthrough. The buyer will typically do a final walkthrough of the property before closing to make sure that any repairs or other issues have been addressed and that the property is in the condition that was agreed upon in the contract.
5. Closing documents. Finally, the buyer and seller will sign all of the necessary documents to transfer ownership of the property and finalize the transaction. This includes the mortgage documents, deed, and other paperwork.
Closing can be a complicated process, but it is essential to completing a real estate transaction. By following these steps and working with experienced professionals, the buyer can ensure that they are fulfilling the terms of the agreement and taking possession of their new property.