The Process of Closing

Step 1. Initiation
Mutual acceptance: Buyer(s) and seller(s) both sign (mutually accept) the Purchase and Sale Agreement and real estate agents deliver the contract to the escrow company.

Step 2 - Confirmation
Escrow company "opens" the transaction using information from the Purchase and Sale Agreement; receipts earnest money, if applicable; orders a title report concerning the property under contract.

Step 3 - Verification
Title company reviews the title report, checking for liens, judgements and other possible "clouds" on the title. Title company also gathers information regarding utility payoffs (water, sewer, garbage, propane), mortgage payoffs and homeowner association dues and other assessments, if applicable.

Step 4 - Preparation - 2 to 3 days prior to close date
Escrow closer prepares final closing papers, receives buyer's lender documents, sends estimate closing settlement statements (HUDs) to lender and real estate agents.

Step 5 - Signings/Documentation - 1 to 2 days prior to close date
Escrow closing agent completes buyer/seller signings; escrow closing agent reviews total package and returns lender's documents to lender for final review and approval; escrow closing agent collects funds from buyer(s).

Step 6 - Completion
On the day of closing, escrow closing agent balances the final file with the lender; obtains approval to release the completed transaction for recording; contacts title company (or department) to release the completed transaction for recording at the County Courthouse.

Step 7
Upon receipt of buyer's (lender's) funds and recording numbers, escrow closer notifies real estate agents and buyer(s) and seller(s) of closing; disburses all funds and sends final settlement statement (HUD form) to all concerned parties.