In the process of buying or selling residential real estate, there are many steps to consider. This is true for both buyers and sellers of residential real estate. While the preparation and to-do list may be different for buyer and seller, both will conclude the process with a real estate closing. A closing is arguably the most important part of a residential real estate transaction for both buyer and seller.
Prior to a real estate closing, the deed and other closing papers must be prepared. At this point, the title for the home will pass from seller to buyer. The buyer then pays the balance of the purchase price which is often paid mostly by a mortgage loan. Along with the deed and other title paperwork, a closing statement should be prepared prior to the closing which details the debits and credits to both the buyer and seller.
There will also be closing costs associated with the sale or purchase of residential real estate. The nature, amount and fairness of closing costs is often determined by the specific details of the sale with a division of costs often fairly divided between buyer and seller. However, it isn’t unusual to see the bulk of the closing costs falling on one party or the other. Closing costs may be a point of contention at a closing if either buyer or seller contend that they do cannot or will not pay a fair portion, thereby putting the closing costs solely on the other party.
While this isn’t typical, it does happen. Often a seller or buyer will let on early in negotiations that closing costs will be an issue for them one way or the other. However, occasionally this information isn’t brought to the table until just prior to or at the closing proceedings. It can certainly change the outcome for buyer or seller so it can be a big deal for both parties.
Source: realestate.findlaw.com, “Why you need a lawyer when you buy or sell a house,” Accessed January 22, 2018