A real estate closing, or the “closing” as it often called, is a meeting between the buyer and the seller, the buyer and seller’s real estate and agents, and occasionally the loan officer, conducted by the closing attorney for the purpose of signing all documents necessary to transfer title of real property from the seller to the buyer as well as the lender’s loan documents. Once you have signed a sales contract for your new home, and arranged for financing, and completed all necessary inspections and repairs, you are ready to complete the purchase. The buyer and seller will meet at a real estate lawyer’s office to sign all of the documents necessary to transfer title from the seller to the buyer, which include:

• a closing disclosure/settlement statement authorizing the disbursement of all funds;
• loan documents from the bank or mortgage lender financing the property
• a deed of conveyance from the buyer to the seller
• miscellaneous other documents to complete the terms of the sales contract

At the closing, borrower and lender will provide their funds to the closing attorney, the seller will transfer the title to the property to the buyer by a written deed. The “closing attorney” who handles the closing will then payoff any loans or liens the seller has secured by the property, and disburse all of the monies owed to the seller, the real estate agents and other vendors owed money on the sale.

In a typical real estate transaction or loan closing, the closing attorney performs the following services:

• Researches the title to the property to verify the record owner of the property, to verify that the owner has marketable title and to identify the lienholders who will need to be paid off at closing to transfer marketable title to a buyer and to properly secure any new loan to be secured by the property.
• Obtains payoff information for existing loans and other liens.
• Obtains taxes and homeowner association dues (if any) which will need to be paid and or prorated at the time of closing.
• Provides the lender with a title commitment and other information that the lender needs to complete the loan and generate a loan package.
• Prepares a settlement statement for the lender and the Realtors to approve.
• Schedules a closing date and time to complete the transaction according to the terms of the sales contract and the lender’s closing instructions.
• Conducts a closing where the buyer (or borrower) and the seller will sign all documents necessary to complete the transaction.
• Disburses all funds in accordance with the settlement statement.
• Records deeds, deeds to secure debt, and other documents with the Clerk of the Superior Court for the County in which the property is located.
• Verifies loans and other liens which were paid off at closing are properly released.
• Returns final recorded documents to the buyer and lender.

• A government-issued photo ID. We are required to verify your identity at the time of closing. A valid driver’s license or passport are acceptable forms of identification, as long as it includes a photograph.
• Certified Funds and Checkbook. Whether you are the buyer or the seller, items sometime arise at the last minute, and you may need to write a check. For example, there may be a recording fee that we had not anticipated, an agreed fee that was not provided to our office, or a last minute repair that is added to the final settlement statement.
• Any items required by the Lender. Your lender may instruct you to bring certain documents to closing to be returned to the lender with your signed loan package.

The seller will convey title to the buyer by a deed. There are various types of deeds, but the most common type of deed used in a residential real estate transaction is the warranty deed. The type of deed the seller will provide is a matter of contract.  A general warranty deed contains warranties of title from the seller to the buyer, that the seller is seized and possessed of a good and marketable title, and will defend the title against all claims.

 A limited warranty deed limits the warranties of a good and marketable title to those persons claiming by and through the seller. For most people, this will make no difference. The buyer gets the same rights to a property under a limited warranty deed as they would under a general warranty deed. However, limited warranty deeds do limit the seller’s exposure to liability for claims against the title. For that reason, now more than ever, buyers will need an owner’s title insurance policy.