1. An offer is accepted by the seller and a contract is signed by both parties, marking the effective date of the contract.
2. At the same time , a deposit is paid to an attorney, broker or escrow agent. The deposit does not become the property of the seller until the closing takes place.
3. The buyer reviews and signs off on any disclosures. These disclosures vary based on property type, but often include things like known flaws with the property, prior improvements or repairs, radon gas and lead paint disclosures.
4. The buyer may elect to perform inspections of the property as agreed upon in the contract and these inspections must be completed by a certain date, which is usually within 10-15 days. Based on the outcome of inspections, buyers have a certain number of days to provide the seller with a report revealing any defects and the buyer may elect to ask the seller for repair work, closing cost credits or a reduction in the sale price due to flaws that were uncovered.
For those borrowing to purchase a home, the mortgage process can be the most stressful part of the transaction. It’s best to start as early as possible and be ready to produce lots of documentation.
The detailed steps that make up closing are:
1. A title search is performed to determine if there are any liens or assessments on the title. Provided that the title is clear, the closing proceeds as planned.
2. A buyer’s attorney or title company begins preparing the paperwork to convey title to the property and schedule the date for closing.
3. A final cash figure for what a buyer needs to bring to the closing in the form of a cashier’s check is calculated. This is based not only on a mortgagees closing costs, but also the proration of property taxes and utilities..
4. A final walk through may be performed the day of or before closing to verify the property is in the same condition it was in when the process began.
5. At the closing table the buyer and seller sign all closing documents. At the conclusion of the closing the representative from the title company or your attorney will record the deed and any other documents with the appropriate registry of deeds.
After all of the documents have been signed and payments exchanged, buyers generally take possession of the keys unless a separate agreement has been reached to allow the seller stay in the property for a period after closing.