What is a closing & and when does the closing process start?​

What is a closing & and when does the closing process start?​

A real estate closing is the final step in the real estate buying and selling process. Once an offer on a property is officially accepted by the seller, a purchase agreement is made, and a closing date is set. Upon closing, the property ownership is formally transferred from the seller to the buyer, after which the buyer is free to start their move-in or renovation process. Your agent, lender, and title agency will work together to complete their end of the deal. This means that their timeline might vary from the buyer and seller’s agreed-upon closing date.

The closing process in real estate starts when the buyer and seller agree on the terms and sign a purchase agreement.

Here's a simple explanation of the steps:

  1. Agreement: Both parties agree on buying and selling terms, and they sign a contract called a purchase agreement.

  2. Money in Escrow: The buyer submits some money (earnest money) to show their commitment. It's held by a third party (an escrow agent) until closing.

  3. Inspections: The buyer checks the property, and if there are issues, they talk with the seller about fixing them. (This step is optional and may differ on every transaction)

  4. Title Check: They make sure the property's title is clear, and the buyer often gets insurance to protect against any title problems.

  5. Loan Approval: If the buyer is getting a loan, the lender checks everything and approves the loan.

  6. Final Check: The buyer looks at the property one last time to make sure it's okay.

  7. Closing Day: Both parties meet to sign papers. The buyer pays the remaining money, and the seller gets the sale money.

  8. Recording: The paperwork is officially recorded, and ownership is transferred. The buyer can now move in.
These steps might differ based on local rules, but that's the basic idea of how a real estate closing works.


    • Related Articles

    • I wish to list on Houzeo. Where do I start?

      Ready to Sell Your Property? Houzeo is Your Perfect Partner! Here’s a step-by-step guide to help you list your property on Houzeo seamlessly: 1. Visit Houzeo’s Website Go to Houzeo.com to get started. 2. Start Your Listing Click the "Start Listing ...
    • What are some examples of charges included in closing?​

      Closing costs are various fees and expenses that buyers and sellers incur when completing a real estate transaction. These costs can vary widely based on the property location, the type of property, and the specifics of the transaction. Here are some ...
    • How can I upload a documents on Houzeo?

      At Houzeo, we’ve streamlined the process of uploading and managing documents. Most forms and paperwork can be sent directly to you for electronic completion and signature, which will automatically be added to your Houzeo dashboard. In rare instances, ...
    • Why should I use a Flat Fee MLS listing service?​

      A Flat Fee MLS listing service offers a cost-effective way to sell your home while maximizing exposure. Here’s why it’s a smart choice: 1. Save Thousands on Commission ? Traditional real estate agents charge 3% to 5% in commissions. With a Flat Fee ...
    • Can I upgrade the plan after listing the property?

      Absolutely! Houzeo allows you to upgrade your plan after your property is already listed. Here's a breakdown of the process depending on the plan you're targeting: Upgrading to Gold/Platinum: Upgrading to the Gold Plan from any tier is a simplified ...