Standard Closing Procedures for Houses and Condos
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Step 1 - Once you have met with a realtor and the contract for sale has been signed by the relative parties, you will then come to my office so I can look it over and make any necessary changes. During this time period, known as attorney review, I will be in contact with the seller's lawyer as he or she will also most likely make certain changes to the contract. When both sides are satisfied with the contract attorney review will be finished and your purchase process will move onto the next phase.
Step 2 - During attorney review a closing date will be set, though that day is not absolutely set in stone, and is more a "target" date. Usually you must forward a check through my office to the seller's attorney for the balance of the initial deposit. This can be a personal check. During this initial time period you will need to begin the process of inspecting the property and applying for a mortgage and complete the mortgage application. Upon receipt of the inspection reports and the mortgage commitment, I will review those documents with you.
Step 3 - It is very important that you keep track of the inspection contingency date and the mortgage contingency date since you will waive your right to an inspection or a mortgage if you do not perform them within the time allotted (as stated in the attorney review letter). Inspection reports will be sent to the seller, and at this time closing credit will be negotiated for repairs. I will order Title work for you once you are firmly committed to purchase the property to ensure the seller and property in question are free of all liens and claims of other properties. On the day before closing I should get the banks mortgage package which will set forth the banks fees. Sometimes we simply estimate the cost of closing and refund the difference once the closing is finalized. You must bring a certified or bank check for any funds needed at closing.
Step 4 - On the day of closing, you will first go to a walk through of your unit and then come to my office to review the mortgage documents It is at this time that you will review the title thoroughly. You will also obtain your survey certification, review the Title, and provide any additional information or documentation that is needed to the bank before the process can further.
Step 5 - Once we have reviewed the mortgage(s) the seller and/or his or her attorney will come to my office to finalize the sale with necessary signatures and monetary exchanges. At this time I will receive the deed on your behalf and will forward the deed and mortgage to the county register for formal recording of these important documents. The title work will be sent to the bank and you will review your mortgage commitment. Once the closing is finalized, my office staff goes to work in forwarding all checks to the condo association, payoffs to the seller's bank(s), taxes, and Title Company, survey and realtor fees.
Step 6 - Once the closing date is officially set, you will review the banks closing instructions and procedures and conduct the final inspection. It will take approximately three months for the county to assign a book and page to the deed, mortgage, and discharge of the seller's mortgage which will be forwarded to the title company so that a final title policy can be issued to you and your bank. Now, you will close and move in!
The Fee - For the above, which is a brief overview of a standard condominium closing, is $1,250 (plus out of pocket expenses of around $150 for overnight packages, courier to court and edoc downloads from the bank). The other costs and expenses which will be disclosed to you by your mortgage company, include title work, escrows, taxes, condominium capital fees, survey, loan interest, filing fees, courier and UPS costs (which vary by closing and our not controlled or paid to the law firm). I have a great staff that communicate using e-mail and PDF files or whatever may best suit your needs. Once again, thank you for your interest in my firm.
To set up a consultation concerning any real estate closing, contact us online or call us at (201) 656-1000.