Define: Closing Day

Closing day refers to the final step in a real estate transaction where the buyer and seller complete the necessary paperwork and transfer ownership of the property.

On closing day, the buyer and seller will sign various documents, including the deed, mortgage agreement, promissory note, and any other necessary legal paperwork.

Typically, the buyer, seller, their respective real estate agents, and a closing agent or attorney will be present at the closing.

Closing costs can vary, but they typically include fees for the title search, appraisal, attorney or closing agent, lender fees, and prepaid expenses such as property taxes and homeowners insurance.

The duration of closing day can vary depending on the complexity of the transaction, but it typically takes a few hours to complete all the necessary paperwork and finalize the sale.

In certain circumstances, closing day can be rescheduled if both parties agree. However, it is important to consult with your real estate agent or attorney to understand the implications and potential costs of rescheduling.

While it is uncommon, the buyer can back out on closing day. However, this may result in financial penalties or legal consequences, depending on the terms of the purchase agreement.

The earnest money deposit is typically applied towards the buyer’s down payment or closing costs on closing day. If the transaction falls through, the disposition of the earnest money will depend on the terms of the purchase agreement.

Buyers and sellers should bring a valid form of identification, any required funds for closing costs or down payment, and any necessary documentation requested by the closing agent or attorney. It is advisable to consult with your real estate agent or attorney beforehand to ensure you have all the necessary items.