| Preparing for Closing |
As the seller, you have relatively little to do at this point. By keeping abreast of progress on both sides, you can help avoid common glitches.
Be informed
If your buyer is having trouble getting a loan on the terms specified in the contract, you should know it; if he/she is turned down, it could jeopardize the whole deal, and you could end up putting the house back on the market. A day or so before closing, make sure all the necessary papers and documents have been gathered and are in the hands of the right players.
Can things go wrong? Sure. Documents can be misplaced, delayed or lost. However, common last-minute glitches can be avoided.
- Parties who should be present at closing need to be informed of any change in the date, time or place. They should be reminded a week before closing and again the day before. E
- veryone named on the deed under which you hold title must sign the new deed by which you grant title.
- Know when you will be paid. Don't expect to walk away from the settlement table with a check in hand, but don't leave the question of when and how you will be paid undetermined.
- If you are buying another property, consider having both closings at the same office scheduled back-to-back. That way, the timing of the disbursement is not a problem. You sign a paper authorizing the title company or attorney to assign the funds from your sale to your purchase.
The papers you'll need
Here's a checklist of what is needed for closing:
- A copy of the sales contract and documentation showing that any contingencies have been removed or satisfied.
- All documents needed to complete the transfer of title. This may include certificate of title, deed, correcting affidavits, quitclaim deeds, survey and title insurance policy or binder.
- Homeowners insurance policy. When the buyer plans to take over the unused portion of your hazard insurance, you'll need to make arrangements in advance for all paperwork to be completed on time.
- Prorations for ongoing expenses such as insurance premiums, property taxes, accrued interest on assumed loans and utilities (if not shut off between owners).
- Receipts showing payment of the latest water, electric and gas bills.
- A certificate from your lender indicating the mortgage balance and the date to which interest has been prepaid.
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