What to Expect at Closing

A closing, or settlement, is the meeting during which ownership of the property is officially transferred from the seller to the buyer. The buyer and the seller, their attorneys, both real estate sales professionals, a representative of the lender, and the closing agent typically attend the closing. The closing involves settling any open issues, balancing and verifying an often-complex closing statement, and signing all documents necessary to complete the transaction. An attorney with experience in closing real estate transactions will advise you at closing to ensure that your rights are protected.

Closing Costs

Closing costs are one of the least-understood aspects of the home purchase procedure. Although a good closer will take time to walk a buyer through the numbers, an experienced attorney will provide additional insight and verify that the costs are being appropriately allocated between the buyer and the seller.

Closing costs vary somewhat by community, but they generally are between two and five percent of the home's purchase price and include:

Attorney fees
Escrow fees
Property taxes to cover the period to the closing date
Interest from the closing date to one month before the first monthly payment
Loan origination fees
Recording fees
Survey fees
Mortgage insurance, if applicable
Title insurance, both for the buyer and the lender
Loan discount points
The first escrow payment for future real estate taxes and insurance
Homeowner's insurance policy payment or receipt
Appraisal fees
Pest or other specific inspection fees
Document preparation fees

What Happens at Closing?

At closing, the buyer typically presents his or her paid homeowner's insurance policy or a binder and receipt showing a paid premium. The closing agent will then list the amounts the buyer owes the seller and the amounts the seller owes the buyer. The seller will provide any items the contract requires him or her to provide. Once the parties have verified that the numbers are correct, the parties sign the closing statement, the buyer signs the mortgage note and the mortgage, and the seller gives the buyer title to the property in the form of a signed deed.

The buyer often pays the lender's agent all closing costs, and the closer provides the buyer with a settlement statement listing all the monetary items. Immediately after closing, the closing agent should record the deed and mortgage.

Documents the Buyer Receives

The buyer typically receives:

Settlement statement, itemizing the services provided and the fees charged
Truth-in-lending statement
Mortgage note
Mortgage or deed of trust
Sales contract
Any required affidavits, if any
Copy of the deed
Keys to the home

Conclusion

A closing can move very quickly, with both parties discussing and sometimes disagreeing about the numbers, all of which ultimately represent your hard-earned money. An attorney who is knowledgeable in real estate law can help you protect your rights.

DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.

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Se habla español. Commercial litigation attorneys at Grumer & Macaluso, P.A. represent clients throughout Florida in state and federal trial and appellate courts. Many of our clients are businesses from the south Florida communities of Boca Raton, Coral Springs, Pompano Beach, Naples, Cape Coral, Fort Lauderdale, and other communities in Miami-Dade County and Broward, Palm Beach, Martin, and Charlotte counties.