Closing the Sale – Step 8

The Closing

In order to complete your home sale, you will need to go through a closing procedure. The closing (also called a settlement) involves the signing of documents to execute the sale, and transfer the property from the seller to the buyer. How the closing is conducted can vary, in most instances, round table closings bring all parties together at the closing table; in others, buyers and sellers complete the process through separate, individual appointments with the title company. In Ohio closings are typically conducted in a round table fashion however, if you’d prefer to close separately this is always an option and you need simply ask your agent to make arrangements for such.

Pre-closing: title company activities

The purpose of the closing is to make sure the property is ready to be transferred to you the buyer, from the seller. To ensure that the transfer can be made, the title company normally prepares the following items ahead of time:

• Title search and report. Research of land records, court records and other legal documents to determine if the seller has a clear, marketable title to transfer to you.
• Title insurance binder. Indicates the result of the title search and assures the lender the title to the property qualifies for a title insurance policy.
• Survey. Confirms the property boundaries are as described in the purchase and sale agreement. (A survey is not required in all states.)
• Termite, well, sewer or septic certificate. Certifies that the sewage and water supply work properly and that the property is free of termites and/or other wood destroying insects. The sales contract will state whether you or the seller is responsible for these inspections and certificates.
• Title insurance. Title insurance protects your lender against losses that may be incurred because of a defect in the title, a forgery, a recording error, claims of undisclosed or unknown spouses or heirs, and other risks that did not appear in the public records when the title search was done.
• Hazard insurance.Hazard insurance (also referred to as a “homeowner’s policy”) protects you and the lender from loss in the event the home is damaged or destroyed by fire, storm or other hazards. You are responsible for obtaining hazard insurance prior to closing and for providing proof of insurance to your lender. The lender may also require additional insurance against loss by flood or earthquake.

Pre-closing: buyer activities

• You or your agent will arrange for any inspections that were agreed to in the purchase agreement and follow up with proof of completion.
• If possible, have your agent obtain a copy of the settlement statement (also referred to as a closing disclosure) so you can review it for accuracy prior to actual closing. Click here for a sample Closing Disclosure.
• Make arrangements with your bank to wire the cash required to close on the purchase of your new home. If you are paying cash this will be the full purchase amount. If you are financing your purchase this will be your down payment plus closing costs. By law (see Ohio Amends the Good Funds Law), title companies can accept cashier’s checks up to $10,000, however, most have policies in place which limit the amount they will accept via cashier’s check to $1,000. The limit on personal checks is also held to $1,000, however, policies vary and you are encouraged to confirm this with your settlement provider.
• Don’t forget to bring your driver’s license as the title representative will need to see and make copies of your  identification.

At closing:

1. Meet at the appointed time and place. An attorney or title company representative, the buyer, your agent and the buyer’s agent will be there, too.
2. The attorney or title company will have searched the title, provided title insurance and obtained old and new lender instructions. All unresolved walk-through deficiencies will be resolved at this time.
3. The attorney or title company representative will explain the deed of trust or mortgage and the settlement sheets.
4. Review and sign the deed and settlement sheets.
5. Pay down payment and other appropriate closing costs with a cashier’s check.
6. Get a copy of the settlement sheets for your records.
7. Receive the keys to your new home!

After closing:

1. We will provide a list of useful numbers for the activation of home services and utilities. You will need to contact these service providers and let them know you are the new owner of the home and request that the services be transferred into your name. We also encourage you to review our checklist on Things To Do After Closing.
2. MOVE IN!