Closing
Closing is the final step in executing a real
estate transaction.
The closing date is set during the negotiation
phase, and is usually several weeks after the
offer is formally accepted. On the closing date,
the parties consummate the purchase contract,
and ownership of the property is transferred
to the buyer. In most jurisdictions ownership
is officially transferred when the contract
is registered at the cadastre, or, in most US
states, at the office of the County Recorder
of the county in which the property is located.
Several things happen during closing:
* The buyer (or their bank) delivers a cheque
for the purchase price. * The seller signs the
deed over to the buyer, and gives them the keys.
* A lawyer or civil law notary registers the
new deed with the local land registry office.
* The seller receives a cheque for the proceeds
of the sale, less closing costs and mortgage
payouts.
Closing typically happens in escrow, which means
that a lawyer, real estate broker or other trusted
party gets the money and the signed deed, and
arranges for the transfer. This is primarily
so that the seller can give up ownership of
the property, and the buyer can hand over the
payment, without both parties having to be there
at the same time. Escrow ensures an orderly
transaction, or if something goes wrong, an
orderly termination of the agreement.
