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What happens at the closing?
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This is where the transaction will be consumed and the seller will part with his property for consideration of receiving the purchase price. If the seller has a mortgage that is secured by the property the lender will want the loan to be re-paid as the seller will no longer have the property as collateral against the loan.
If the buyer purchases the property with financing a portion of the purchase with a mortgage the lender will want to obtain a deed of trust on the property as security against the money loaned to the buyer.
The closing generally happens at the offices of the title company that will issue the title insurance. Neither the buyer nor seller need to be physically present. All documents can be signed and delivered in the days prior to closing via FedEx or another express carrier.
The money used for paying for the purchase and all buyer’s closing costs need to be delivered to the title company in GOOD FUNDS. Cash or wire transfers would be considered good funds. A personal check is not considered good funds as the title company would not know if the checks are covered by enough money on the checking account. Money orders or cashiers checks on the other hand are good funds.
If you decide to utilize these forms of transferring money make sure they are made out to the title company to insure that loss or theft of the check do not result in the money getting into the wrong hands. |
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