Whether buying or selling property in Pennsylvania, all parties participate in a closing. At the closing, the final steps to transfer ownership from the buyer to the seller occur. Several steps are involved, including simple ones such as presenting proper identification. Knowing what to expect at the closing can help move the process along.
Going through the closing process
Real estate closings involve making sure both parties live up to their agreements in the real estate contract. Clearly, the buyer must have the funds available to pay for the home, or else the sale cannot go through. The seller may have obligations to perform repairs, and a walk-through before the closing could ascertain whether such work was completed.
Each party will receive paperwork that requires signing, such as property transfer documents. Those unsure of the language in the various closing paperwork entails could have the documents reviewed. A legal review could address confusion and concerns about signing the papers.
Preparing for the closing
Long before the closing, each party will have responsibilities to perform. The buyer would need to put money into escrow and provide loan-related documents if purchasing with a mortgage. The seller must present a deed although a title search will be performed by the title company as well.
Since several steps are involved with a real estate closing, the process could take 30 to 60 days. Sometimes, unforeseen issues may lead to a delay. Both parties may sign an addendum to the legal contract to extend the closing date.
The buyer or seller could attempt last-minute changes on the closing date. Such actions might lead to trouble. The buyer may lose his or her deposit, and a seller could face a breach of contract lawsuit. Following all the proper steps in the closing process could help prevent such legal issues.