Settlement

The big day is here! Joining you at settlement will be an attorney or title company representative, the listing and selling brokers, and the buyer. The attorney will have searched the title, provided title insurance, and obtained old and new lender instructions.

After all unsettled walk-through issues are resolved, the attorney will explain the following:

 

• Deed of trust or mortgage
• Deed of trust note or mortgage note
• VA, FHA, or lender forms
• Settlement sheets

 

You and the buyer will then sign all necessary forms. The buyer pays the balance of their down payment and closing costs, and you pay your appropriate closing costs.

Open Look at Closing Costs
Typical closing costs include:

 

• Attorney fees
• Lender's inspection fee
• Appraisal fee
• Broker's commission
• State deed transfer tax
• Recording fee
• Condominium or homeowner's association packet fees
• Water escrow
• Termite inspection
• Loan discount fee (points based on loan amount)
• Mortgage pay-off penalty (see your deed of trust note)
• Interest up to the date trusts are paid off

 

Disbursement
If your taxes or insurance have been escrowed, you will receive any money accumulated in the account for bills not yet due. Additionally, you will be reimbursed for any money paid in advance and not used, such as property taxes. Taxes and homeowner's association dues or condominium fees will be prorated on a daily basis. You will receive these refunds at or after settlement, depending on the locality. Check with your listing broker for details.

The house has now been sold, settled, and funds disbursed.

Transferring Keys
Unless otherwise provided in the contract, the buyer gets possession at settlement. In addition to transferring all house and garage keys to the new owners, you should provide all warranties and user manuals on major appliances in the home.

Congratulations
Once the house keys are transferred, you have successfully sold your home. Congratulations!