2. Closing

The closing officially occurs when all the conditions of the contract have been met, most of which took place on the buyer's side.

The buyer's lender usually arranges the closing and makes sure that the closing agent has all the necessary documents in place. Most closings take place at the title or escrow company, but can sometimes take place at an attorney’s office. These days we're also seeing more remote closings, which are either done digitally or they come to you (though this is more common with refinances).

At the closing, the lender “funds” the loan with a cashier’s check, draft, or wire to the closing agent who disburses funds in exchange for the title to the property. This is where the transfer of ownership officially occurs and the buyer receives possession of the property.

As the seller, do you need to attend the closing? Usually not. Closing for sellers is much less stressful than for buyers – all you need to do is pre-sign the paperwork and have the funds from the sale wired to a bank account.

Remember that the fees and taxes for the seller are 2-4% of the sale price. These closing costs are deducted from the profits made on the sale of the home and paid at closing, so you will only need to bring funds to closing if you don’t have enough equity in the home to cover these costs.

What to expect

Sign documents: At the closing appointment you’ll sign all the legal documents related to the sale of your property.

Hand over keys: The keys are handed over to the buyer and you will have now vacated the premises.

Close escrow: This last step is handled by the escrow agent, where they will transfer the deed for the home to the new owner (or their lender), pay off your remaining mortgage balance, pay all closing costs, and turn over your profit.

What to bring

  • Keys to home, garage door openers, and lock codes
  • Cashier’s check for closing costs
  • Driver’s license or identification

Closing resources:

Closing costs for sellers:

Closing checklist:

Congratulations on selling your home!

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