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The Real Estate Closing

The buying and selling of real estate is often a long and stressful process involving numerous steps and procedural formalities. The Real Estate Closing is final step and culmination in the real estate purchase - sale transaction that that finalizes the purchase and sale of the property. A closing date is scheduled during the negotiations after the seller has formally accepted the buyers offer. The Closing, also referred to as settlement in some states involves processing the appropriate documents and services for the transaction. During the real estate closing, the home purchaser provides the payment for the money owed for the property. In return, the seller signs the deed for the property, transferring the property to the buyer. There is also an exchange of documents necessary to execute the transaction.

The closing is among the most important events in the real estate purchase and sale transaction. The closing process itself is complicated and complex and can be confusing to a buyer and seller. A real estate attorney, or title company generally prepare the deed and other necessary closing documents.

Real Estate is frequently paid with the proceeds of a mortgage loan. A closing statement should be prepared prior to the closing showing the debits and credits to the respective buyer and seller. Title to the property passes from the seller to the buyer upon payment of the money owed. The deed and mortgage instruments are signed with the attorney making sure that the documents are appropriately executed.

Those present at the traditional closing often include the buyer and seller, the buyers attorney and the seller attorney, a title closer, an attorney for any lending institution, and real estate sales agents.

Today, many real estate closing are conducted remotely. They are particularly popular in Florida, where both buyers and sellers often reside out of state, and prefer not to have to return to Florida for the closing. Also, with the advent of Covid 19, digital real estate closings have become the closing of choice for many precipitants. Digital real estate closings can be conducted quickly and efficiently. Recognizing the benefits of digital real estate closings, a number of states, including New York and Florida have passed legislation allowing notaries to verify signatures remotely. In addition software has been developed that enable documents to be signed and transmitted electronically.