The way a closing is handled depends on the custom in your locality. Helping the buyer understand how closings usually proceed and fix closing problems is the job of the buyer’s attorney. Without an attorney the buyer may sit at the closing without anyone to ask advice of. In many instances, the buyer’s real estate agent will attend the closing, but unless the real estate agent is also an attorney, the buyer will be all alone dealing with a very complex legal event.
Generally, at a closing the buyer will present proof that homeowners’ insurance has been obtained and the premium paid to the closing agent or person whose job it is to coordinate the closing. The closing agent will review the amount of money owed to the seller and the amount of money owed to the buyer, and present documents to both the seller and buyer listing these amounts. The seller will provide proofs of warranties, inspections, and other documents that he or she is responsible for. The title insurance company will present the title. Finally, the mortgage company will provide the buyer with documents regarding the mortgage loan.
The buyer will sign the mortgage agreeing to the terms of repayment, the mortgage financial note, which is a legal promise, and other documents that provide the buyer with required information about how much money he or she is actually spending.
Once all the mortgage papers are signed, the closing agent will again calculate the closing costs, and these will be recorded on a settlement statement that the buyer should review. Closing costs will be paid and the closing agent will then make provisions to record the new deed and title with the state, county, and city. In many areas it is the buyer’s attorney who has responsibility for recording the new deed/title with the county. It must be recorded, no matter who does this task.
If all goes well at the closing, the buyer will leave the closing with the keys to his or her new home.