Closing day refers to the date mutually agreed to by the seller and buyer for the transfer of funds, title and the keys, and the date that posession officially changes hands. This can be a stressful time for both parties considering that this may be the largest sale or purchase of a lifetime. Guidance by an efficient Realtor and a few essential preparations can make the process go much smoother.
The buyer's lawyer will review the closing statement with the buyer before signing the final documents.
The lawyer should also review the exact legal description of the property and any liens, encumbrances which may have been discovered in regard to the property. Another aspect they will review with you is that the correct title has been established on the deed.
Buyers should also arrange to re-inspect the property just prior to closing. This can avoid any nasty surprises on moving day. If the agreement of purchase and sale had contracted that the seller agrees to make certain repairs, you have a right to insist that these be done.
Whenever possible avoid closing on a Friday, at the end of the month, or before long weekends. If anything goes wrong the banks will be closed. For example, if you are retiring your mortgage, you may face an additional interest adjustment if the funds reach the lender too late on a Friday afternoon. The seller may be faced with three extra days of interest (four days over a long weekend!). I always recommend closing mid week, like a Wednesday.
Don't forget your utilities. Depending on the area you live, the buyer's lawyer will contact the local water, electricity and gas companies to have the meters read as of closing day. However, it may be your responsibility so check with your real estate agent or lawyer beforehand. This avoids any gaps in service for the buyer and extra expense for the seller.
Most other services into the home are the responsibility of the seller. At least a week before the closing date, contact your cable television, telephone and Internet service provider. Terminating service on or just before closing day can save you additional charges.
Adjustments: There are also several adjustments to consider. These are designed to settle any expense incurred (or income earned on rental properties) by either you or the buyer, as of the day of closing. Municipal property taxes, monthly condominium fees, utilities, etc. are all common expenses that need to be adjusted at closing.
But, dont worry...a reliable and reputable real estate lawyer will walk you through all these steps. Need a referral to a good real estate lawyer? Let me know.
Closing day need not be worrisome if both parties plan ahead and review all paperwork carefully with their lawyers. In fact, with enough preparation, closing day should be the beginning of a new chapter for both buyer and seller in their new homes. Home is where the heart is....so, please let me know how I can help.