Watch this video to get a quick idea of the seller's side of closing. Also known as “settlement” and “escrow” the closing is a meeting where property, money, title and liens are exchanged between all the parties involved.
The closing agent typically conducts the meeting. They’ll review the sales agreement to determine payments and credits due from both sides, and ensure that transaction costs like title and taxes are paid.
- The buyer pays you - usually the remainder of down payment and prepaid taxes.
- Adjustments like prepaid OR overdue taxes
- And, of course, commissions for brokers or agents are included.
- The buyer signs the mortgage note, promising to repay the loan
- and then signs their lien on the property.
- The lender pays you.
- You sign a deed, giving the buyer title to the house
- Title is recorded by the State, making the buyers the legal owner.
Sometimes you even shake hands and hand over the keys to their new home.