What Does Closing in Real Estate Mean?

Closing refers to the final step in a real estate purchase transaction. It is when the seller transfers property ownership to the buyer.

 

A lot of things happens during the closing.

  • Simplified, the escrow company distributes all funds, and the new deed is registered to the buyer.

  • The buyer also pays for all of the title fees and mortgage that has accumulated during the real estate transaction.

  • The seller will be paid for whatever they have earned from the sale, and if applicable, the real estate agents will be paid for their commissions.

 

What Does a Closing Attorney Do?

Title Examination

Both the buyer and the lender require property title that is clear and free from any problems that will haunt them after the sale is over.

  • A closing attorney therefore evaluates the title for any restrictions of use, encroachments, easements.

  • The attorney will also determine whether the title clearly allows the seller to transfer it to the buyer and whether there are any existing mortgages on the property that must be satisfied in order to transfer the title over.

    • If any issues or concerns about the status of the title arise, the parties address them during this process.

 

Title Insurance

Title insurance protects the buyer and the lender if there is a problem with the title in the future.

  • After the title examination, the real estate attorney will write an opinion about the title for the title company so they can issue a title binder. This title binder is required in order to obtain title insurance.

    • While absolutely essential for the lender because they must assure that it is in the first lien position of the property, title insurance is optional for the buyer. However, because it protects the buyer's property rights and is relatively inexpensive, it is best to go through with title insurance.

 

Coordination

A real estate attorney must communicate with the buyer, seller, and lender, and any additional players, such as brokers, surveyors, the homeowner’s insurance company, home inspectors, contractors, homeowners’ associations, etc.

  • The closing attorney must coordinate all of these parties in order to make sure that the closing takes place in a timely manner.

    • Communication is especially crucial when the attorney begins to prepare the settlement statement and when confirming the dates and amounts of money needed for closing.

 

Review of Documents

  • On closing day, the real estate closing attorney must be present to go over and review the various documents associated with the property and loan closing.

  • The closing attorney will offer explanations for any confusing documents, such as the deed, settlement statement, disbursement and loan documentation.

 

Record and Disbursement of Funds

The closing attorney closes the transaction and distributes all the funds.

  • The attorney will review all the documents, and make a final review of the title and deed.

  • The attorney will then issue the final opinion on the title and pay the title company, distribute all of the funds in the transaction, such as brokerage fees, county taxes, homeowner’s insurance premiums, inspection fees, seller’s proceeds, and the attorney fees.

When You Need a Closing Attorney, the Rapha Law Firm Will Always Be Available

 

CONTACT THE ATTORNEY

 

Mailing Address:

2847 Veterans Memorial Hwy, P.O.Box 860, Austell GA 30168

Tel: (678) 723 5524

Email:

raphalawfirm@gmail.com

millie@raphalawfirm.com

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