Page 67 - New Agent Real Estate training book

Closing Process

Schedule the Closing

Once the buyer and seller have selected their attorneys, the buyer’s agent and seller’s agent will both
send a copy of the contract along with a request to schedule the closing on a date and time as stipulated
by the sales contract. At this point, the attorneys will contact everyone to confirm the date and time, as
well as begin the closing process. Buyer and seller and agree to use the same closing attorney or each
can choose to have their own individual attorney.

Gathering Information for the Closing

Each attorney’s office will usually have a paralegal contact the both their buyer and seller client as well
as their realtors to gather the information necessary for the closing.

The buyer’s attorney will request from the buyer their contact info (telephone and e-mail, ect.), lender
name and contact, loan information and name of insurance agent/agency for homeowner’s insurance.

The seller’s attorney will request from the seller their contact info(telephone and e-mail, ect), seller
social security number or TIN (required to be gathered by state and federal law), loan payoff information
(loan servicer name, telephone number and loan number for each mortgage loan, including home equity
line of credit loans), forwarding address, homeowner’s association dues information for the proration of
HOA dues at closing and for obtaining a dues statement from the HOA for closing, which is necessary to
confirm that all HOA dues are current and to ascertain if there are any HOA transfer fees or other HOA
fees due at closing.

Behind the Scenes

Leading up to the closing, the attorneys will be coordinating and working with the realtors for the buyer
and seller, and also the lender for the buyer, to make sure all is in order for closing and to provide to the
lender the items it requires for closing, This includes title information for the property, fees and costs for
the closing disclosure form or settlement statements, and other items the lender requires for closing.

Title Search, Survey, Certificate of Assessment

A Title is the right to, and the ownership of, property. A Title or Deed is sometimes used as proof of
ownership of land. Clear title refers to a title that has no legal defects. As a part of the closing process,
the buyer’s attorneys will order a title search of the property, which is an examination of the public
records for typically a forty (40) year search period to ascertain if the title to the property is marketable
free and clear of all liens except those to be paid and satisfied at closing. A Lien is a claim or charge on
property for payment of a debt. If the closing attorney determines that there is a problem or issue with
the title, the parties will be notified of the issue along with the recommendation of the closing attorney.
A title search usually takes around 2 weeks to order and receive. The attorney for the buyer will also
recommend title Insurance, which is an insurance policy that guarantees the accuracy of the title search
and protects lenders and homeowners against legal problems with the title.