Learn how to ensure that your closing process is free of defects, such as errors, fraud, or liens, that can jeopardize your real estate transaction. Follow these tips and best practices.

Ensure a smooth closing by: * Reviewing key documents (contract, title report, etc.) for accuracy. * Hiring a title professional to identify potential ownership issues. * Scheduling inspections to uncover any hidden property defects. * Maintaining open communication with all parties involved. * Double-checking closing documents and understanding all fees. * Having a backup plan in case of delays. By being prepared, detail-oriented, and communicative, you can minimize surprises and ensure a successful closing.

Last updated on Mar 9, 2024

How can you ensure that your closing process is free of defects?

The closing process is the final step in a real estate transaction, where the buyer and the seller sign the documents, exchange the funds, and transfer the ownership of the property. However, this process can also be fraught with defects, such as errors, omissions, fraud, or liens, that can jeopardize the deal or cause legal problems later. To ensure that your closing process is free of defects, you need to follow some best practices and work with reliable professionals. Here are some tips to help you achieve a smooth and successful closing.

1 Review the contract

Before you proceed to the closing, you should review the contract carefully and make sure that all the terms and conditions are clear and accurate. You should also verify that all the contingencies, such as financing, inspection, appraisal, and title, have been met or waived. If you have any questions or concerns, you should consult your real estate agent or attorney and resolve them as soon as possible. You don't want to discover any surprises or discrepancies at the closing table that can delay or derail the transaction.

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Abdulla fahmy

Real Estate Consultant @ Kennedy Property | Home's For People | customer service | Resilience | Stress Management | Investment & Property Advisor | Abu Dhabi real estate | Helping people to maximize ROI
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Ensure a smooth closing by: * Reviewing key documents (contract, title report, etc.) for accuracy. * Hiring a title professional to identify potential ownership issues. * Scheduling inspections to uncover any hidden property defects. * Maintaining open communication with all parties involved. * Double-checking closing documents and understanding all fees. * Having a backup plan in case of delays. By being prepared, detail-oriented, and communicative, you can minimize surprises and ensure a successful closing.

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Gagan Timsina

Real Estate Broker @ Real | Market Research, Communication
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To ensure a defect-free closing process, thoroughness is key. Start by double-checking all documents for accuracy and completeness. Engage a reliable attorney or a closing agent to review contracts and legalities. Implement a checklist to cover every step, from due diligence to final walkthroughs, and use technology to track progress and flag potential issues. Regular communication with all parties involved will prevent misunderstandings and ensure any problems are addressed promptly. By adopting a proactive approach, you mitigate risks and streamline the closing process.

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2 Hire a title company

One of the most important aspects of the closing process is the title search and insurance. The title search is a process of checking the public records to ensure that the seller has the legal right to sell the property and that there are no liens, encumbrances, or defects on the title. The title insurance is a policy that protects you from any potential claims or losses arising from title defects that were not detected by the title search. You should hire a reputable title company to perform the title search and issue the title insurance. The title company will also prepare and record the deed and other documents, handle the escrow account, and facilitate the closing.

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3 Conduct a final walkthrough

Another essential step before the closing is to conduct a final walkthrough of the property. This is your last chance to inspect the property and make sure that it is in the same condition as when you agreed to buy it. You should also confirm that any repairs or improvements that the seller agreed to make have been completed satisfactorily. If you find any issues or damages, you should notify your agent and the seller immediately and request a remedy. You should not sign the closing documents until you are satisfied with the condition of the property.

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Brian Sharp

Top-producing residential real estate broker. #1 for listings sold in Brentwood over the past 20+ years. Mentor to agents. Public speaker/author on real estate topics.
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Don't skip this step... I can tell you many, many stories where the home wasn't in the condition it was supposed to be in, repairs weren't made, or the seller had removed window coverings or other fixtures that were supposed to stay. If you catch this before closing, you retain the power in that you can ask for the items to be rectified, or some financial concession, or your buyer will postpone or call off the closing altogether. Once it's closed, it's more difficult to get a resolution.

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4 Gather the necessary documents

To prepare for the closing, you should gather all the necessary documents that you need to bring or sign. These may include your photo ID, proof of homeowners insurance, loan documents, closing disclosure, cashier's check or wire transfer confirmation, and any other documents required by your lender or title company. You should review these documents in advance and make sure that they match your expectations and agreements. You should also ask your agent or attorney to explain any terms or clauses that you don't understand or agree with.

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5 Attend the closing

The closing is the final meeting where you sign the documents, pay the closing costs, and receive the keys to your new home. Depending on your state and local regulations, the closing may be attended by you, the seller, your agents, your attorney, the seller's attorney, the lender's representative, the title company's representative, and a notary public. You should arrive on time, bring your documents, and be ready to sign and verify a lot of paperwork. You should also ask any questions that you have and make sure that everything is correct and complete. Once the closing is done, you should receive a copy of all the documents and a statement of the final settlement.

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Brian Sharp

Top-producing residential real estate broker. #1 for listings sold in Brentwood over the past 20+ years. Mentor to agents. Public speaker/author on real estate topics.
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I always try to attend the signing appointment if possible. The signer nearly always points out to my clients that most agents don't attend the showing. The main reason I do it is to be of service to my clients. But it's a great side benefit that my clients really appreciate the effort.

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6 Follow up after the closing

The closing process is not over until you have received the recorded deed and title policy, paid off any outstanding bills or fees, and updated your address and utilities. You should also keep all the closing documents in a safe place and refer to them for tax purposes or future reference. You should also maintain a good relationship with your agent, lender, and title company, and contact them if you have any issues or questions. By following up after the closing, you can ensure that your transaction is finalized and secure.

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Brian Sharp

Top-producing residential real estate broker. #1 for listings sold in Brentwood over the past 20+ years. Mentor to agents. Public speaker/author on real estate topics.
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Most agents don't follow up after that closing. That means that your client's last memory of you is getting a big fat commission check, then going dark on them. They may think you only cared about getting paid. Checking in after closing multiple times is critical to you continuing to give good service to your clients and opens up the avenues for referrals.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you ensure that your closing process is free of defects?

1

2

3

4

5

6

7

1 Review the contract

2 Hire a title company

3 Conduct a final walkthrough

4 Gather the necessary documents

5 Attend the closing

6 Follow up after the closing

7 Here’s what else to consider

Real Estate

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How can you ensure that your closing process is free of defects?

1

2

3

4

5

6

7

1 Review the contract

2 Hire a title company

3 Conduct a final walkthrough

4 Gather the necessary documents

5 Attend the closing

6 Follow up after the closing

7 Here’s what else to consider

Real Estate

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