So, you’re ready to buy or sell that old Kentucky home. What do you need to do at closing, especially if you bought your home without using a Realtor?
Buyers and sellers have a number of obligations at a house closing, which will vary depending on whether a bank or mortgage company is involved in the transaction. The obligations will be defined in the sales contract, which is usually negotiated through each party’s real estate agents. But if you’re not using a real estate agent, you should consult with a real estate lawyer to make sure the obligations are met.
In a home sale, the seller will have disclosed the condition of and any repairs done to the roof, structural elements, basement, plumbing, sewer, water supply, electrical system, and heating and cooling system. The seller will have also advised the buyer of any issues relating to the property’s boundaries and zoning.
Armed with that information, the buyer will have completed all necessary inspections, with the sales contract defining who pays for each inspection.
A title search will be performed to determine any outstanding liens against the property. In addition, the buyer will purchase all insurance required at the time the deed is signed.
If the house is being financed through a bank or mortgage company, the lender will require documentation that all inspections and title searches are complete, and that insurance coverage is in place. Both the buyer and seller will be required to sign numerous forms at closing verifying these arrangements.
If the buyer does not need to finance the home purchase, the vast majority of the closing paperwork is unnecessary. The buyer simply signs for and pays for the property.
At the house closing, the following closing costs are usually assessed (with the sales contract again specifying which party is responsible for paying them):
- Brokers commission
- Survey fees
- Title insurance
- Recorded release of mortgage
- Transfer taxes
- Attorney’s fees
- Home inspection fees
Closing a home can be a complex process, especially when the purchase is being financed. That’s why consulting with a real estate lawyer can help you avoid many of these problems.
What issues have you faced closing on a home? Jump in the comments and tell us about them.
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