What are the steps of real estate closing?
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Originally Posted On: https://cooktolley.com/2019/11/what-are-the-steps-of-real-estate-closing/
Georgia residents like you who are looking into renting residential real estate may have heard of real estate closing. What is it, exactly? Why do you need to go through it, and what are the steps in the process?
The process of real estate closing is the final step between the seller and buyer of a property before it officially passes hands from the seller to the buyer. In this step, things like the title search occurs. This is done to ensure the Seller has good title to the property and that no one else has any rights. This is also where you get title insurance, which keeps you safe in the event that any issues arise or come to light with respect to your title.
Other steps in between include gaining pre-approval for your mortgage, locking in your interest rate, negotiating any costs of procedures, and doing a home inspection.
The actual closing occurs when you sign papers that officially make the property yours. There are rules in place that ensure this is done in a particular way. For example, in Georgia, deeds have to be signed in front of a witness AND a notary public (with their signatures affixed) in order for the deed to be recorded. If you get a loan to purchase property, you also have to sign the lender’s final loan documents in front of a Georgia attorney per Georgia law and title insurance requirements. Typically, some of the lender’s loan documents have to be signed in front of a witness and notary as well. To ensure everything is signed properly & there are no issues, closing attorneys ask all parties to come in at one time so that all necessary signing and witnessing can happen in one go, as opposed to needing to track people down.
There are many other steps to go through before you reach the final signing, however. It can potentially be complex. If you are interested in reading more about real estate matters like closing, consider taking a look at our web page on residential and commercial real estate, linked here.
Article written by:
Cook & Tolley, LLP
304 E Washington St
Athens, GA 30601