Set Closing Date

At last! You’re ready to close on the sale of your home! Closing Day is that long-anticipated day you finally transfer your property to the buyer. In the process, you’ll pay off any mortgages, collect your sales proceeds, and maybe even that same day set the wheels in motion to use your proceeds for the purchase of a new home.

The Date

The actual date of your closing will be negotiated during the purchase-offer agreement phase of your sale. Either the buyer makes you an offer with a definite closing date and you accept it, or you choose a closing date that works better with your timetable and objectives. It’s always wise, of course, to try to accommodate the buyer’s wishes – if you want the sale to go through and proceed smoothly. In most cases, the date is set somewhere in the vicinity of 30 to 35 days following your acceptance of the purchase offer.

Repairs

It’s best to complete any home repairs you negotiated with the buyer before Closing Day arrives. Nothing kills a closing faster than to fail in this. Likewise, any monies or credit promised for the replacement of various items should also have been provided. If, say, you promised to include a $1,500 credit for carpet replacement, that credit is expected at closing.

Attendance

As the seller, you may choose to attend the closing or avoid it altogether. The buyer, however, does not have this luxury as his or her fresh signature is required to complete the sale. You should be given the opportunity in advance of Closing Day to sign those documents requiring your signature. All other signatures necessary will be corralled by your escrow agent. That pretty much excuses you from making a Closing Day appearance. Still, you might find it in your best interest to attend anyway – in case some unforeseen problem arises. Remember, you want the closing to go as smoothly as possible, and your presence on Closing Day could aid in resolving any last-minute issue that might prevent the sale from being completed.

After the Close

It often happens that sellers can’t vacate their property by the closing date. If that’s your situation, you should negotiate a post-closing possession agreement with the buyer ahead of time. The buyer, naturally, is going to want possession of the property at closing. If you don’t want to be evicted by a sheriff for trespassing on property that’s no longer yours and held liable for damages, a post-closing possession agreement is vital! You’ll find it worthwhile to secure this agreement during the purchase-agreement phase of your sale, or even sooner, if possible, when first listing your property – whenever you know the day you’ll be able to vacate.

Shortly after closing on the sale, your mortgage company should send you a Release of Mortgage document. This is generated when the mortgage company receives payment in full for your former property, and it’s released not only to you but also to the county recorder and your escrow agent, if you used one. You’ll want to keep this document – and all other closing documents – in a safe place. You’ll need them come tax time.

Closing Thoughts

When you close on a property, you and the buyer are fulfilling the terms of the agreement you reached in the purchase-offer negotiation process. Also, by paying off the loans and generated fees, you’re making the property available free and clear of any legal monetary claims against it. That allows the buyer to take possession of the property without the threat of any binding liens.

A closing can be regarded as a settling of all open accounts between the seller, the buyer, both lenders, and, if applicable, the real-estate service. Many times, the buyer’s lender will engage someone to “officiate” the closing, making sure the interests of all parties are satisfied. If not, see to it that you or your lender have an escrow agent handle the closing. After all, property sales like this are typically closed in an escrow agent’s office.

Be advised also that states differ in the types of closings they find legally acceptable. Depending on the state, you can close either with escrows that take effect over days, weeks, or months … or you can close everything on a specific date, which is referred to as a “table closing.” It will help you, the seller, to know in advance which type of closing your state prefers.