A real estate closing is an important day, especially if you’re the seller. At the closing, a seller will transfer the property to the buyer, pay off the mortgage (if any), and receive the proceeds from the sale. However, there are some additional responsibilities you should keep in mind.
What happens at a closing?
The closing is essentially the final step of buying or selling a home. The buyer and seller will fulfill all the agreements listed in the sales contract at the closing. Basically, the closing is a transfer of funds (the purchase price) and an exchange of the sale documents such as the deed. The closing is when the seller officially transfers ownership and possession of the property.
What costs should the seller keep in mind?
In most cases, the seller doesn’t need to bring any funds to the closing, but that certainly doesn’t mean there aren’t any costs. Contrary to popular belief, closing costs don’t only apply to the buyer. However, the seller’s closing costs will be deducted from the proceeds of the sale. So, the seller doesn’t typically need to provide those funds beforehand. The seller will also pay commissions to the real estate agents. These funds will also be deducted from the proceeds of the sale.
Does a seller need to attend the closing?
While the buyer needs to attend the closing, the seller is not required to be physically present. Most of the time, the seller can pre-sign the deed and other transfer documents. In this case, the seller would give their real estate attorney power to sign any necessary paperwork at the closing. After the closing is complete, the proceeds of the sale would then be directly wired to the seller’s bank.
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