5 Frequently Asked Questions About Real Estate Closings

Completing a Murphy, North Carolina real estate closing is like attending a stage play premiere. In both cases, the players have prepared for weeks (sometimes longer), perfecting their roles and working smoothly with other ensemble members. Support personnel scurry behind the scenes, handling endless details and the inevitable snafus that threaten to derail the production. Despite the obstacles, however, the big day arrives as planned, and everyone eagerly awaits a reward for their hard work.

If you’re buying or selling your Murphy, North Carolina home, land, commercial building, or investment property, you (and your realtor) want a smoothly executed outcome so you can begin the next chapter in your life. For a general real estate closing overview, including the roles played by buyers and sellers, view this snapshot of the players and the process.

Each real estate closing is actually a legal transaction, the completion of which results in a property transfer. Simply put, the property changes hands from one party (the seller) to another party (the buyer). Although many real estate firms call this transaction a “closing,” other agencies use the term “settlement.” Either term describes the same legal transaction.

It’s common for the seller to vacate their Murphy, North Carolina property on or before the real estate closing date. In some cases, however, the seller remains in the home for a predetermined period after the closing, paying rent to the buyer before leaving the property at a later date.

In most states, face-to-face real estate closings are the norm, although a few states don’t have this requirement. If you’re a buyer or seller in a face-to-face closing, you’ll join your realtor at the conference table. The buyer’s and seller’s attorneys are also present, as legal issues can frequently crop up during a closing transaction.

Additional real estate closing participants include a representative from the title insurance company, along with closing and escrow agents. One person can fulfill multiple roles: handling relevant closing details, directing document exchanges and funds disbursements, and providing answers to both parties’ questions.

Before a real estate closing can take place, four essential requirements must be met. First, the buyer and seller must finalize a purchase agreement or contract (with expert assistance from their respective realtors). Next, the buyer’s mortgage application must be completed and approved, providing them with financing for their purchase. Of course, a cash buyer can skip this step.

A professional appraiser must complete a property appraisal that states their estimate of the subject property’s value. Next, a home inspector must make an extensive examination of the Murphy, North Carolina property, and generate a detailed report that the buyer must approve after receiving answers to their questions.

The inspector’s report should explain the property’s major defects, plus their estimate of repair requirements and costs. The report can also include a list of less-critical defects and repair recommendations. After the buyer analyzes the report with their realtor, and any questions have been addressed, they can make a better-informed decision on the property purchase.

Note that the above-mentioned items don’t always occur in the same sequence, but they must take place before the closing transaction.

Before a real estate closing (or property transfer) can take place, the participating title company must verify that the seller is actually the current legal owner of that property. Assuming the seller legally owns the Murphy, North Carolina property, the title company moves to the next step: determining whether the seller has “clear title” to that property.

To that end, title company staffers conduct extensive research via phone call and the Internet, hunting for any existing mortgages, liens, unpaid taxes, or judgments against the property. A title company that has performed its due diligence will also uncover other restrictions that could affect the property sale. If discrepancies are uncovered, they must be corrected. Not surprisingly, this can take considerable time.

After the title company concludes that the buyer can receive “clear title” or “good title” to the subject property, the real estate closing can move forward. Finally, because the title company has all title-related facts and documents at its disposal, the title company office frequently serves as the real estate closing location.

Although most real estate closings take approximately one hour, an especially complex transaction can take longer. During the closing, both parties will be directed to sign numerous documents, and money will be disbursed as required. If the buyer and/or seller have questions pertaining to the documents and/or the closing process, the closing agent will address each issue before moving forward.

After the real estate closing is over, the final payment has been rendered, and the property has legally changed hands, the buyer and/or seller often celebrate the conclusion of one chapter (and the beginning of another) at their favorite Murphy, North Carolina restaurant. And the next time they’re ready to dip their toes into the real estate market, The Poltrock Team is just a phone call away. They’re listing experts, and they’re happy to answer faqs and provide helpful tips, while they provide top-notch services to clients throughout the country.

The Poltrock Team – REMAX Mountain Properties – Murphy NC – www.ILoveMurphy.com – Call us Toll Free at 1-866-Murphy-NC or 1-866-687-7496 – Murphy’s #1 Real Estate Team