The home closing or settlement is a very important day for home buyers and sellers alike. This is the day all money and documents are taken care of so the ownership and possession of the property can be transferred from seller to buyer. Your Agent at JS Realty is there to help walk you through the closing process and answer any questions you may have about your closing.

At this time, all previously agreed upon actions, such as work on the house or property need to be completed and all personal property needs to be removed. Payments to the contactors and all other parties involved with the transaction will be paid on closing day. Also on this day, if the seller has a mortgage, this will be paid in full.

A closing agent is typically hired as a neutral third party to handle all of the documents, money, and various other things needed for the closing. The closing agent is usually the title insurance company that is insuring the buyer’s title to the property and the closing will most likely take place in their office.

What to Bring to the Closing:

Buyers:
-Certified or cashier’s check made out to the closing company
-Insurance binder & paid receipt – be sure to check who the loss payee is by calling your loan officer
-Photo ID
-Apply for your utilities, electricity, city water, city sewer, and city gas

Sellers:
-Keys, garage door openers, etc. for the house
-Paid receipt from the garbage company
-Photo ID
-If in the city of Duluth, bring the I & I (sump pump) certificate
-Call to cancel utilities effective on the day of closing
-Call to cancel insurance, only after closing

The buyer will always have to attend to sign original loan documents but the seller may or may not need to attend as they may be able to pre-sign the deed and other documents. The proceeds from the sale may be wired directly to your bank or, in some situations, their new home purchase.

After the closing is complete, the buyer is in possession of the property and the seller must give them all keys, garage door openers, and any other devices related to controlling the home. The seller will have moved all of their possessions out of the house and the property should be clean. The buyer has a right to a final walk through just before signing all the final papers.

Make sure to keep copies of all documents as your tax preparer may want to see them when preparing your taxes for the year of sale. Also remember to give yourself more than an hour for the closing as you never know what could happen.

If you know what to expect from a closing beforehand, everything will be smoother and easier on the day of. Feel free to submit any questions or comments as we are always here to help.