Our goal as your Closing Lawyers is to make the closing process as smooth and stress- free as possible. Part of that is ensuring our clients are well-informed through every part of the process. To empower our clients, we have gathered this list of several documents you will encounter from contract to closing.
Listing Agreement/Buyer Brokerage Agreement: When you use the services of a REALTOR or real estate agent, you will be asked to agree to terms of engaging them for their services. They provide a valuable service. Do not be fearful of hiring a professional and overconfident in your own knowledge and abilities to negotiate. As a Closing Attorney, I appreciate the value they bring.
Purchase Agreement: This will likely be the first document you agree to along with the other parties in your transaction. This document will lay out the terms and conditions of the property’s sale. The purpose of this document is to ensure that both the buyer and seller agree to details such as purchase price, earnest money deposit, and the timeline for the closing date.
Closing Disclosure: You (the buyer) will receive this document from the lender at least three days before the closing. This will outline the final terms of the loan including the interest rate, monthly payments, closing costs, and loan terms. Reviewing the closing disclosure is crucial to ensure all the financial aspects of the transaction are accurate.
Deed: The deed is a legal document that transfers ownership of the property from the seller to the buyer. There are different types of deeds, such as warranty deeds, quitclaim deeds, and special warranty deeds, each offering different levels of protection to the buyer. The deed must be signed and notarized by the seller and then recorded with the appropriate government office to officially transfer ownership.
Title Insurance Policy: Title insurance protects the buyer and lender against any defects or disputes regarding the property’s title. The Closing Attorney or title company conducts or contracts for a thorough search of public records to ensure that the title is free and clear of any liens, encumbrances, or other issues. The title insurance policy provides coverage for any unforeseen title defects that may arise after the closing.
Home Inspection Reports & Disclosure: Before closing, the buyer typically conducts a home inspection to identify any potential issues with the property. The inspection report outlines any problems or defects found during the inspection, allowing the buyer to negotiate repairs or credits with the seller. Additionally, sellers are required to provide disclosures about the property’s condition, history, and any known defects or issues.
Closing Statement: The closing statement, also known as the settlement statement, provides a detailed breakdown of the financial transactions involved in the closing process. It itemizes the closing costs, including lender fees, title insurance premiums, property taxes, and prorated expenses. Reviewing the closing statement ensures that all the financial details of the transaction are accurate and accounted for.
A real estate transaction involves a multitude of documents that are crucial for protecting the interests of both buyers and sellers. The great thing is that you don’t have to do it alone! Our real estate closing attorneys are here to help you! Read more about what a closing attorney does here.
