There are typically four parties involved in a typical closing: the buyer(s), the seller(s), the bank or lender financing the purchase, and closing attorney or escrow agent. Each has an important role in making sure the closing happens effectively and efficiently.
During escrow, the purchase is validated through a number of steps, including:
- Ensuring the property title is clear of any defects or previous liens.
- Ensuring the property has been appraised and accurately represents the value represented to the bank/lender.
- Ensuring the bank is ready to pay the seller with a payment check and that the buyer has paid any down payment as well. Both payments are put into an escrow account managed by the closing attorney and not released until all the purchase requirements are met.
- Ensuring the buyer has been notified, read and has committed by signature to all the purchase documentation necessary to complete the sale.
- Ensuring any property taxes, homeowner’s association dues, and other fees have all been addressed before the seller transfers the property to the closing attorney, which is then transferred to the buyer.
- Passing along the keys and title of the property to the buyer, the title lien to the bank financing the deal, and the payments for the property to the seller.
Once these steps have occurred, a home purchase is considered closed and can be recorded at the County courthouse. Once recordation has occurred, the home officially belongs to the buyer.
The closing process doesn’t have to be stressful, and Team Winkler is here to help you every step of the way.