Buying or Selling a Home: The Closing

 Posted on January 05, 2017 in Real Estate

The "closing" of the purchase of a home is when the parties formally complete the sale. At the closing, the documents are reviewed one final time to make sure all terms and conditions have been met. Also, the balance of the purchase price is paid to the seller, the seller delivers a deed giving title to the buyer, and the buyer receives the keys to the property.

Financial aspects of a closing involve adjustments to determine just how much the buyer must pay. The seller gets credit for items it has prepaid but that benefit the buyer (such as taxes), and the buyer gets credit for items the seller owes but has not paid.

The image of a typical closing is of people signing many documents without reading them. Unfortunately, this is often the case. However, signing these documents without reading and understanding them can cause problems later, especially if they were prepared by the other side. It is better to get legal help well before the closing, when your lawyer can review the offer, purchase agreement, and other documents, and can add or correct terms to help protect your interests.