By: Kyle Stewart, Supervising Attorney
The deal is struck, the contract is signed, and a closing date is set. With this date on the calendar, all parties look forward to a simple closing, free from issues or delays. The recipe for a smooth closing comes down to two simple words – be prepared!
A real estate transaction is complex due to the involvement of several stakeholders: the buyer, seller, lender, real estate agents, closing attorney, and the title insurance company. This settlement also deals with the most significant asset most individuals will own in their lifetime, their home. As such, it’s essential that you head into closing with forethought and preparation.
COMMUNICATION is key to a successful closing and frequent dialogue between all parties is imperative for success. Breakdowns in communication create gaps in information and could create delays when issues are not disclosed prior to coming to the closing table. So, always partner with professionals that prioritize communication and provide updates to you throughout the process.
UNDERSTANDING POTENTIAL PITFALLS is another key to a successful closing. As the seller, it is important to provide notice of life events that have occurred since purchasing the home. Such events, if undisclosed, could impact the sale of your property. Therefore, if you’ve experienced a marriage, a separation/divorce, a death, an incapacity, a relocation, a prior judgment, or a mortgage on record, or anticipate a significant purchase immediately before or after closing, please share this information with your real estate professionals. Communicate these updates to your agent, lender, and closing attorney as early as possible to ensure updates are resolved prior to the day of closing
As the buyer, you will have a different set of concerns. How should the deed be prepared if you intend to purchase the property with another individual? Did you obtain a survey? If so, it needs to be reviewed by the attorney. Are you purchasing the property for a specific use, which may be important to you, but a bit uncommon? Be sure to discuss these and other concerns with your real estate agent and closing attorney.
CLOSING DAY POINTERS are important to keep in mind.
Always bring “satisfactory evidence” of your identification (a valid form of ID) to your closing. The identification should be a current state or federally-issued identification card with a photograph and a physical description or signature. The most common forms of identification are state driver’s licenses, passports, and older military ID cards. Please note that the notary will be unable to use a temporary driver’s license or an expired license.
The real estate industry has experienced a steady increase in wire fraud. To prevent fraudulent activity, coordinate a secure transfer of funds with the closing office prior to closing. This approach will allow funds to be safely submitted by the buyer before closing and applied by the seller following the transaction.
Lastly, it’s important to coordinate with the attorney’s office to ensure that all parties required to execute documents are present at the closing. In North Carolina, spouses have certain marital rights to real estate property. Therefore, they will generally need to be present to execute certain documents, even if they are not a party to the loan or the deed.
Moving is a life-changing event, which can be stressful for everyone involved. However, with the proper amount of preparation and guidance, the closing will go smoothly: leading to a happy buyer, a happy seller, and happy days ahead.
Our team of professionals at Brady & Kosofsky is ready to assist you with your next real estate transaction and we look forward to making your closing simple and hassle-free!
