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Ahh...The Real Estate Closing.

© Diane E. Wilson

Ahhh...the much anticipated real estate closing! Today is definitely a day to smile as all of your hard work is about to pay-off!

If you have done all your preparation, met all contractual obligations and chosen a reputable closing agent this part should be a snap! This article will discuss most of the items needed for closing and address what you need to expect. Items that may be unique to your particular situation will have to be covered by your closing agent.

Do not wait until the last minute to clear items pending in the contract. Inevitably a seller will wait until two days before closing to make a required repair only to find out a part has to be backordered! What a headache this will cause!!!

Closing Date All written contracts should have a closing date (review the chapter on contracts). The closing date is the day where everyone signs and the sale becomes a “done deal”...right? In theory, yes, that is right. In reality, that date is actually a “target” date to sign the paperwork. I can’t specifically recall any contract that has actually closed on the actual closing date. You see, most prepared contracts also provide for an automatic extension of that date to finalize contract terms and contingencies. Additionally, addendums are available allowing for more time to close a sale.

With that said, every effort should be made to aim for the contract specified closing date. ever, that if something does not fall into place that does not mean the entire sale is lost. Agreement of the parties is the key to determining the actual closing date.

Again the warning, make absolutely sure the agreement of the parties is in writing. This is, in particular, the time when the practice of getting things in writing seems to become lax. You have limited or no recourse if you allow the contract to expire without obtaining an extension in writing. Protect yourself!

Sellers Focus The buyer will have to satisfy the lender requirements, review title policy, obtain insurance, etc... You do not need to pre-occupy yourself with the buyer’s responsibilities other than to get reassurance that they are being fulfilled. The details of their financing is of no importance to you. This article focuses attention to the sellers, so you need to pay attention to your duties. All too often sellers are so nosey finding out how much down payment the buyer is having to make or what interest rate they are getting that they fail to fulfill their own obligations. Unless the seller is owner financing, this information is useless to you.