What Happens at Closing?
Closing day is the day that the buyer and the seller complete the legal transfer of the real estate. The Closing (also called the Settlement) is the culmination of a lot of work performed on behalf of the Buyer and Seller by various Real Estate related professionals. This can include the real estate agents, the attorney for the buyer or seller, the mortgage broker, the lender, the appraiser, the lender's attorney, the title insurance agent, and the title insurance company. Other professionals may need to be involved, including the surveyor, the home inspector, the pest inspector, the municipal or sewer inspector, and possibly the general contractor if the property has new construction. Representatives from these companies may be in attendance at the actual closing, and many of these firms will be paid only after the closing is completed. They each have a vested interest in making sure that your closing happens timely and without problems.

Given the number of professionals that could be working together to prepare for the Closing, it is imperative that all of the parties communicate well together and provide the best possible service to the Buyer and Seller in the transaction. Liberty Bell Agency is proud to be acknowledged as one of the best Title Agents in Pennsylvania for communicating among all the parties, and providing for a simple and timely closing. In fact, Communication is one of our Six Keys to Success.

On the day of closing, a representative of the title agent will usually conduct the settlement. Both the Buyer and the Seller need to be present at Settlement, or have pre-arranged to have an attorney act on their behalf if they cannot attend the meeting (for example, if the party is out of the country). Liberty Bell Agency may also be able to arrange for a “counter-sign” closing if the parties will be at two or more different locations on the settlement date.

Before the buyer and seller arrive at closing, it is customary and prudent for them to complete a final inspection, or walk-through of the property, to make sure any repairs that were requested have been made and that items which were to remain with the house (drapes, light fixtures) are still there. The buyer and seller each should have noted the utility meter readings, if they want to make any adjustments for costs of the utility services that may have accrued since the last bill was paid.

At settlement, both the buyer and seller will provide certain documents and receipts, review and sign various other documents, and make affirmations as to certain facts. These documents along with the appropriate funds shown on the Settlement Statement will be provided to the representative of the title agent at the closing table. The title agent is responsible for making the necessary disbursements of all settlement funds, other than those disclosed as “POC” (paid outside of closing).

Settlement can take as little time as fifteen minutes to sign all the forms and transfer ownership, or it can take several hours, depending on the complexity of the transaction. Usually a real estate purchase settlement will last about an hour.

At the conclusion of the closing process, the real estate agent or the title agent will deliver the check to the seller, and the buyer will receive the keys to the home from the real estate agent or the seller directly. These keys should be temporary, as it is a prudent practice to replace all the locks on the home to prevent anyone with duplicate keys from entering the home. The seller may also provide the buyer with documents such as instructions and warranties for appliances and other major components that are part of the home.

At or after closing, the title agent will record the appropriate legal documents for the transaction at the courthouse of the county where the property is located. This usually consists of the warranty deed and the mortgage (also called the security instrument). The recording process is usually the final step in the closing process. Once the documents are recorded, the title agent will prepare the title insurance policies, and forward the policies and recorded documents to the buyer and the lender in the transaction.

Liberty Bell Agency has compiled some related information to help you complete a successful closing. This includes some tips and other helpful information, closing checklists, and frequently asked questions relating to closings. Please take the time to review this information by clicking on the appropriate link located on the upper right column of this page.

Thank you for considering Liberty Bell Agency as your source for Title Insurance and Closing Services.