Closing your loan

Closing day involves the formal, legal transfer of the property from you to the buyer.

This is an important day for you and the buyer. Also called settlement, this is when you, the buyer, closing agent, and perhaps other parties representing the buyer, meet to fulfill all agreements outlined in the purchase and sale contracts.

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Young couple receiving keys from agent

What’s the big deal?

Closing is a significant meeting because a lot of legal and financial transactions take place for you and the buyer. Specifically, you’ll officially transfer ownership of the property to the buyer, pay off any mortgages tied to the property and receive any proceeds from the sale. It’s important that this day run smoothly, especially if you plan on using sales proceeds for the purchase of your next home.

The 24-hour rule

No matter where you live, the buyer is allowed a final walk-through of the property 24 hours before closing. At this time, they'll look closely to make sure that you've completely vacated the property and the home is in the condition described in the contract, including any repairs that were required from inspection. If the walk-through reveals any problems, the buyer can delay the closing or ask for money from you to address the issues. Work with your real estate agent to ensure your home is exactly as promised to avoid any potential issues or delays.

Closing typically takes place at the office of the title insurance company representing the buyer, but this can vary by jurisdiction. As the seller, you are not always required to attend and may be able to pre-sign the deed and other important documents. The title company will contact you with the specifics.

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