What is Closing? |
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Answer:
A closing is the process in which ownership transfers from the seller to the buyer. Prior to closing, all documents and funds are sent to the closing agent, and they keep all information until it is time to transfer ownership. In real estate, it can take up to 30 days to close on the loan. Sellers and buyers usually agree on a closing date, wherein both parties arrive at the closing agent’s office and sign the necessary documents. During this final process, the seller provides a clear title to the property and the buyer pays any settlement or closing costs. The first step in the closing process is to open an escrow account. Some lenders waive escrow, whereas others require an escrow account, which is established to pay the borrower’s annual taxes and insurances. The earnest money or deposit is placed into the escrow account, and credited to the borrower at closing. The real estate agent typically opens the escrow account, and borrowers can choose a real estate attorney or title company to function as the closing agent. If a real estate transaction takes place without an agent, the buyer and seller can waive escrow or open a joint account. Trackback(0)
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