Closing A House As A Seller

By Kaci Cooper, 23 Jan 17:42

The period of closing begins after you have agreed to sell your home to the buyer. At this point the real estate agent and attorney have been agreed upon and all documents will eventually move from the escrow company to the county courthouse, in about four to six weeks. A third party attorney will handle all of the paperwork for you from this point on. The attorney will make sure that buyer gets all of their documents in order and the real estate agent will organize any financial and inspection contingencies that you and the buyer have agreed upon.

When all the terms of your sales contract are met and all the loan documents have been prepared, the closing attorney will prepare the HUD-1 settlement statement, which itemizes the money coming in and being paid out on your closing date. You and the buyer will have a chance to review the statement ahead of the meeting where you sign the final paperwork. The format of that final meeting and who attends depends on local laws and customs.

Seller Responsibilities:
-Keep the house in good condition
-Negotiate and/or repair any problems the buyer’s inspector might find
-Notify your utility services of a final service date
-Prepare to move
-Do not cancel your homeowner’s insurance until the final transfer of ownership has been made

Buyer Responsibilities:
-Hire a general home inspector and perhaps specialty inspectors
-Negotiating any repairs to be made
-Completing the loan package
-Buying homeowner’s insurance
-Setting up accounts with utilities

Prior to Closing Day
Review the document if the buyer’s lender required a survey or final walkthrough. You want to make sure that the boundaries were correct, as well as any repairs that might need to be made.

Closing Day
The day your home transaction closes is the day your deed is sent to be filed at the county courthouse. You and the buyer will sign a stack of closing documents. All bills will be paid such as agent commissions, mortgage payoffs, down payments, etc. You will receive a proceeds check if one is due to you. The buyer receives the keys, remotes for the garage doors, and possibly receipts from any work agreed to be done.

Make sure to bring the following:
-Photo ID, driver’s license or passport will suffice
-The deed of your home if your home is paid off and has no mortgage or liens
-A certified check in the amount told to you by your attorney
-Keys and codes to the house
Don’t forget to gather warranty and instruction manual information for the buyer. Leave them for the buyer when you move out.

What the Seller Pays
The seller’s final amount owed depends on the local customs and what was negotiated with the buyer prior to closing. The seller must pay what he owes at the closing, unless he can get the buyer to agree otherwise. But an amendment to the paperwork means delaying the closing.

Typical Seller Expenses
-The outstanding mortgage
-Real estate commissions
- Property taxes, utility bills, homeowner’s insurance, and condominium dues, if any are due (most of this is prorated at closing)
-Attorney Fees
-Home warranty

Whatever you agree to pay will be deducted from your selling price, so it will not be necessary to bring any money with you to the closing meeting.

Things you might need

How-to Extra Advice

Tags: selling closing