The closing is essentially where the seller sells and the buyer buys the property. By the time you are ready to close on your property, the buyer and seller will have executed a valid purchase agreement. The buyer will have made arrangements to have the necessary financing available to pay for the property (i.e., obtaining a mortgage). The closing takes place when all of the requirements for closing have been met: any title issues have been resolved, the mortgage documents are ready, the funding is available, all of the requirements of the purchase agreement have been met, and the parties are willing to sign the documents.

Essentially, the closing is broken down into two phases. In a typical transaction, the buyer is using a mortgage to purchase the property. At closing, the first step is that the closer will review the mortgage documents with the buyer (borrower) and have the buyer sign the mortgage documents. At this point the buyer now has the funds to purchase the home. The next step is to have the seller and buyer execute the real estate documents that are required to transfer the title from the seller to the buyer. During this second step, other essential real estate documents are executed by both parties. These documents involve tax issues, occupancy escrow issues, and any other matters that the parties want resolved.

If you have additional questions about the Closing Process, please see our Closing Process FAQ.