Closing Process

[Marshae H.]

Newbie here, trying to get this closing process down. Where do you meet to do a closing, is it at the title agency, a courthouse that all 3 parties meet? What exactly do the title person do at the closing? What exactly take place from time of arrival until the money has been collect? How do I, as well as the seller of the house get paid, is it like, the owner hands me the cash, I take my cut and then give the seller their cut?

Can someone please paint this picture.

Thanks

[J Scott]

Depending on the laws/customs of the state, you'll either close at a title company office or an attorney office.  It's the title officer or attorney who is responsible for coordinating everything, collecting money, disbursing money, filing documents, etc.

Generally speaking, the buyer either wires the funds to the title company or attorney before the closing, shows up, gives the title officer/attorney a copy of his license, signs a bunch of papers (if there's a loan involved then it's a LOT of papers) and then gets the keys from the title officer/attorney.

At the same time (not always, but generally), the seller shows up, gives the title officer/attorney their license (to make a copy), signs a few pieces of paper, hands over the keys and then gets a check from the title officer/attorney for their proceeds.

When the closing is completed, the title company or attorney still has a bunch of money left over for things like real estate commissions, taxes, utility payoffs, loan payoffs, etc.  The title company will disburse this money as necessary to ensure everything is paid off correctly and then they'll file the deed with the local recorder.

That's the very high-level answer...