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Closing on a home is the final step before the keys officially change hands. It’s an exciting moment, but it also involves important legal and financial details that must be handled correctly. Buyers and sellers both have responsibilities to fulfill before the transaction is complete. Missing a deadline or overlooking a key document can cause unnecessary stress. Understanding what to expect can help you avoid last-minute surprises and ensure a smooth transition. With the right preparation, you can move forward knowing everything is in place for a successful closing.
1. Reviewing the Purchase Agreement
The purchase agreement sets the terms of the real estate transaction and serves as a binding contract between the buyer and seller. Reviewing this document carefully helps prevent misunderstandings and delays.
Key elements of a purchase agreement include:
- Purchase price – The agreed-upon amount the buyer will pay for the home.
- Contingencies – Conditions that must be met before closing, such as:
- A satisfactory home inspection
- Mortgage approval
- Clear title verification
- Closing date – The scheduled day for finalizing the transaction.
- Seller and buyer responsibilities – Who is responsible for repairs, closing costs, and other financial obligations.
If any issues arise—such as an unclear contingency or an overlooked deadline—addressing them early can prevent last-minute disruptions. We will help review the purchase agreement to ensure all terms align with your expectations before moving forward with the closing process.
2. Understanding Closing Costs
Closing costs are the fees and expenses buyers and sellers must pay to finalize a real estate transaction. Understanding these costs ahead of time helps avoid surprises on closing day.
Common closing costs include:
- For buyers:
- Loan origination fees
- Appraisal and inspection costs
- Title insurance and escrow fees
- Prepaid property taxes and homeowners insurance
- For sellers:
- Real estate agent commissions
- Transfer taxes and recording fees
- Unpaid property taxes or homeowners association (HOA) dues
- Any agreed-upon repairs or seller concessions
Buyers receive a Closing Disclosure a few days before closing, outlining all final costs. Sellers typically see their expenses on the settlement statement. Reviewing these documents in advance allows time to clarify any discrepancies. At LaFountain & Wollman P.C., we will help ensure you understand your obligations so you can move forward with confidence.
3. The Role of the Title Search and Title Insurance
A title search confirms that the seller has the legal right to transfer ownership of the property. It also reveals any potential issues—such as unpaid taxes, liens, or ownership disputes—that could affect the transaction. If problems arise, they must be resolved before closing can proceed.
Title insurance protects buyers and lenders from future claims against the property. There are two types of title insurance:
- Lender’s title insurance – Required by most lenders to protect their financial interest in the property.
- Owner’s title insurance – Optional but highly recommended, as it shields buyers from potential ownership disputes or hidden defects in the title.
Without title insurance, an unexpected claim could put your homeownership at risk. A thorough title search reduces the chances of issues, but insurance provides an extra layer of protection. We will review the title report with you and ensure any concerns are addressed before closing.
4. What Happens on Closing Day
Closing day is when the seller officially transfers ownership of the property to the buyer. It’s a significant moment, but it also involves important legal and financial steps that must be completed before the deal is finalized.
What to expect on closing day:
- Signing documents – The buyer signs the mortgage agreement, promissory note, and closing disclosure, while the seller signs the deed and any required transfer paperwork.
- Final payment – The buyer pays any remaining closing costs, and the lender disburses loan funds.
- Title transfer – The deed is recorded with the appropriate county office, officially transferring ownership.
- Receiving the keys – Once everything is signed and funds are distributed, the buyer gets the keys to their new home.
We will guide you through each step to ensure all paperwork is correct, deadlines are met, and you leave the closing table with confidence.
Closing with Confidence
Closing on a home is an exciting milestone, but it requires attention to detail and careful preparation. Reviewing your purchase agreement, understanding closing costs, verifying the title, and knowing what to expect on closing day all help ensure a smooth transaction. Whether you’re buying or selling, LaFountain & Wollman P.C. will guide you through the process and protect your interests every step of the way. Contact us today to discuss your real estate closing and get the legal support you need.