Signing Papers and Transferring Keys
The big day is here! Tonight you can pop open the champagne, but today there will
be a lot of paper signing and a poignant passing of the keys (don't forget the garage
keys, and the electric garage opener, too).
At the settlement there will be an attorney or title company representative, the
buyer, listing and selling brokers, and all owners. The home seller should bring
all warranties on equipment (or leave them in the house) and any instructions on
equipment maintenance or operation.
The attorney will have searched the title, and obtained old and new lender instructions.
First, all unresolved walk-through deficiencies are resolved.With the buyer, the
attorney explains the deed of trust, deed of trust note, and settlement sheets.
The buyer signs all three, and pays the balance of the down payment and buyer's
closing costs.
With the seller, the attorney explains the deed and settlement sheets and gets the
home seller's signature on them. The seller pays appropriate closing costs.
Seller's Settlement Costs
Closing costs for the seller may include: (Again, ask your listing broker.)
- Attorney's fees (preparation of the deed, settlement fee, and any release fees)
- Lender's inspection fee
- Appraisal
- Broker's commission
- State deed transfer tax or recordation fee
- Condominium or homeowners association packet fees
- Water escrow (to reduce, bring canceled check and last bill; amount prorated at
settlement)
- Termite inspection
- Loan discount fee (points based on loan amount)
- Interest up to the date trusts are paid off
If the seller's taxes or insurance have been escrowed, the seller will receive any
money accumulated in the account for bills not yet due. Additionally, the seller
will be reimbursed for any money paid in advance and not used, such as property
taxes. The seller will receive these refunds at or after settlement, depending on
the locality. Taxes and homeowners association dues or condominium fees will be
prorated on a daily basis. The seller, buyer, and brokers are supplied a copy of
settlement sheets for their records. The house keys are transferred to the new owners.
Disbursement
The attorney or title company will disburse funds after all funds are in hand, checks
have cleared, the new lender has reviewed papers, and the title has been re-checked
and the deed recorded. The seller should not plan to receive funds for up to four
days, although they may be disbursed the same day in some localities. Check with
your listing broker.
The house has now been sold, settled, and funds disbursed.