As a real estate agent in the Twin Cities area, I’ve found that one of the biggest questions my clients have is: “What really happens at closing?” In this article, I’ll take you step by step through what really happens in the closing process. By the end of this article, the closing process should no longer be a mystery to you.
The Closing
The closing is when the seller, the buyer and all other parties involve meet to finalize all the documents in the sale. The seller signs the deed of the house over to the buyer and the buyer pays the price agreed in the contract.
Documentation
The seller also provides any other documentation necessary to the buyer. This can include insurance papers, evidence of title, inspection reports (including any needed repairs) and so on.
Title Insurance
Title insurance is also paid at closing. Title insurance is an insurance that assures your title is clean. You pay to have a public records search conducted and once you get a clean bill of approval, the title is considered clean. If any contradictory records come up later, you are covered by title insurance.
Escrow
Often times closing is done through escrow with a title company. Closing through escrow means that the sale is done through a third party that has no financial interest in the sale.  This helps assure the safety of both parties by having the third party sign off on the sale once both sides have fulfilled their respective responsibilities.
At the End of Closing
Several other things also happen during the closing process:
Commissions for real estate agents are also paid during closing.
The buyer receives the keys to the home
Legal documents are recorded. This is the final step to the closing process.
If you’re thinking of buying or selling a house in the Twin Cities area, talking with a qualified and experienced real estate agent can help you save thousands of dollars and weeks of time. If you’re not already working with an agent you’re satisfied with, feel free to give me a call at 612-581-7313 or send me an email at steveschneeberger@edinarealty.com for a free consultation.