What does it mean for a real estate transaction to close? What are the misconceptions about closing day? What should a homebuyer or seller expect on that day? Can the buyer drive up to the front door at noon sharp and start unloading his worldly possessions? What if the house is in disarray? How does the homeowner (and the agents) actually get paid that day, anyway?
According to real estate mythology (and reality TV), REALTORS® walk a bag of money over the bank, hand over a key, and everyone rides off into the sunset…
We real estate agents actually wish it was that simple. Many a tear has been shed on closing day because of an unforeseen snag. Fortunately—barring an act of God—we can help prevent the vast majority of delays. Some of the action items that must happen prior to closing day, include:
- the lender or mortgage broker sends mortgage instructions to the buyer’s lawyer
- the seller’s real estate brokerage sends letters to the seller’s lawyer regarding details of the sale
- the buyer’s lawyer must review the real property report (RPR) with the buyer
- the buyer and the seller must sign the land transfer with their lawyers
- deposits must be made, mortgage conditions must be met, and contract terms must be addressed
- And on and on and on!
The bottom line is that we can’t hand over the keys until the seller’s lawyer is satisfied their client is getting paid in full. Watch below to learn about the steps that have to happen before everyone gets their happy ending!