Define: Closing

A: Closing refers to the final step in a legal transaction, where all necessary documents are signed, funds are exchanged, and ownership or rights are transferred.

A: The parties involved in the transaction, such as the buyer, seller, their respective attorneys, and a representative from the lending institution, usually attend the closing.

A: Common documents signed at a closing include the deed, mortgage or loan documents, title insurance policies, and any necessary affidavits or disclosures.

A: The duration of a closing can vary depending on the complexity of the transaction, but it typically takes a few hours to complete.

A: In many cases, you have the right to choose your own closing attorney. However, some lenders or real estate agents may have preferred attorneys they recommend.

A: Closing costs can include fees for the attorney, title search, title insurance, appraisal, and recording fees. It is important to review the closing disclosure to understand the specific costs.

A: If title issues arise during closing, it may delay the process. The parties involved will need to resolve the issues before proceeding with the transaction.

A: In some cases, you may be able to appoint someone as your attorney-in-fact through a power of attorney to attend the closing on your behalf. However, this may vary depending on local laws and the specific transaction.

A: After the closing, the buyer officially becomes the owner of the property, and the seller receives the agreed-upon funds. Any necessary post-closing tasks, such as recording the deed, will be handled by the appropriate parties.