The Closing, or sometimes called the Settlement, is the final step in a real estate transaction.
On the closing date, the parties consummate the purchase contract and transfer ownership of the property from the seller to the buyer.
- The buyer (or the buyer’s bank) delivers payment for the balance owed on the purchase, which is usually the remaining 90% of the purchase price plus closing costs of 3.5% (without a mortgage) to 5.5% (with a mortgage).
- The seller signs the deed over to the buyer and delivers the keys to the home.
- A title company will register the new deed with the local land registry.
- The seller will receive the monies due from the proceeds of the sale, less closing costs and mortgage payouts if the seller had an existing mortgage at closing.
For foreign buyers, the closing can take place without the buyer being physically present in the US. The buyer would simply assign Power of Attorney to the buyer’s lawyer or another representative who would then close the deal on the buyer’s behalf. This is a common practice.
The buyer’s work doesn’t end here. Now there are a few things to do Post Closing.