If you’ve never bought or sold property before, the process of closing on your real estate deal may seem a little mysterious. Who is there? What do you need to be prepared for? What will happen? There’s no doubt: closings can be complicated events. In fact, it’s even a bit difficult to tell you “what to expect” in a general sense – every closing is unique. So here are some broad strokes on what a closing entails.

What is a real estate closing?

The real estate closing is the last step in a real estate transaction. This is where you get (or give) thekeys. It’s the point of no return (but it’s not that scary). Transfer of ownership generally happens when one party turns over the deed of the property to the other party – but it’s typically a lot more complicated than simply signing on the dotted line…

Who is present at the closing?

The list of who is present at a closing can vary slightly from situation to situation, but here is a general list of the major players at a closing:

• The seller or the builder’s representative (if it’s a new home)
• The buyer
• Attorneys for the seller and the buyer
• Real estate agents for the seller and the buyer
• The mortgage lender / representative
• The title company representative (sometimes one in the same as the mortgage lender’s representative)
• The closing agent – this is the person who is in charge of guiding the proceedings. Sometimes the closing agent is also the title company representative or another person on this list.
• A notary public

What do I need to do before the closing to assure it goes smoothly?

Your attorney will review all of the closing documents prior to closing to ensure everything goes smoothly. Your attorney will make sure you have taken all the appropriate financial steps before the closing and will let you know exactly what will happen at your particular closing.

There is one other very important step you should take before closing on a property that you are purchasing: 24 hours before the closing, you should do a final walk-through of the property. At this point, you can determine if any changes have been made to the property or if there is any damage to the property that wasn’t there when you signed the contract. If there are problems with the property, they should be dealt with then – not at the closing. Whether or not you are working with a real estate attorney, please do not skip this step – you don’t want to complete the closing, only to find out that you’re going to have to pay for repairs that you did not expect.

Where does the closing happen?

A closing can happen anywhere, but usually takes place at the offices of one of the professionals involved.

What am I expected to bring to the closing?

The answer to this question depends, of course, on whether you are the buyer or the seller and in either case, your attorney will prepare you and make sure you have everything you need. In general, if you are the seller, you need to bring the keys to the property (if applicable). If you are the buyer, you will generally be paying money at the closing, but that doesn’t necessarily mean you’ll be bringing a check with you. The most important thing to remember as a buyer is to communicate with your attorney, who will be sure you are ready for the closing.

What are the actual steps of a closing?

You’ll be doing a lot of signing at the closing so warm up your John Hancock skills. As a buyer, some of the most important documents are those that detail the terms of your mortgage loan. These are complex legal documents that use industry-specific terms that may be unclear to someone who is not a legal real estate professional. Your attorney will thoroughly review these documents – usually before the closing itself – and will make sure its safe for you to sign the documents.

If you are working without an attorney, it is crucial that you pay close attention to these documents. If you see anything you don’t understand or see something that isn’t what you expected, do not sign the loan documents until the issue has been resolved. Once you sign these documents, they are binding legal contracts.