Also called settlement, closing day is when you, the buyer, the closing agent, and perhaps other parties representing the buyer meet to fulfill all agreements outlined in the purchase and sale contracts.
Completing your home sale
Closing is a significant meeting because many 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.
Receive any proceeds from the sale.
At closing, you’ll be required to sign a number of legal documents, so it’s important to ask questions to clarify any complex language.
As the seller, you’ll want this day to run smoothly, especially if you plan on using the sales proceeds to purchase your next home.
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 closing and may be able to pre-sign the deed and other important documents. The title company will contact you with the specifics.
Prepare your home for the final walk-through
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.