Settlement day, often called “closing day,” is one of the most significant milestones in a real estate transaction. It’s the day the keys to the home officially transfer from the seller to the buyer, and all the hard work comes to fruition. Here’s what the experience looks like from both perspectives:
For Home Buyers
As a buyer, settlement day marks the final step in the journey to homeownership. Here’s what you can expect:
- The Final Walkthrough:
Before heading to the closing table, you’ll conduct a final walkthrough of the property, typically within 24 hours of settlement. This is your chance to ensure the home is in the agreed-upon condition and that any repairs requested have been completed. - The Closing Appointment:
At the settlement table, you’ll meet with the closing agent, your real estate agent, and possibly the sellers and their agent. During this time:- You’ll review and sign a stack of documents, including the mortgage note, deed, and settlement statement.
- Funds for the down payment and closing costs will be transferred to the title company or attorney managing the closing.
- Once all documents are signed and payments are processed, the property is officially yours!
- Receiving the Keys:
The moment you’ve been waiting for—getting the keys to your new home!
For Home Sellers
For sellers, settlement day is about completing the legal transfer of ownership and receiving payment for the property. Here’s how it works:
- Signing the Paperwork:
Sellers have the option to attend the closing appointment in person or sign the necessary paperwork ahead of time. Signing ahead of time can be especially convenient if you’re out of town or simply prefer not to attend. - Handing Over Keys and Documents:
If attending in person, you’ll provide the keys, garage door openers, and any other necessary items to the buyer. If you’ve signed ahead of time, these items can be delivered to your agent or the title company in advance. - Receiving the Proceeds:
After all documents are signed and funds are transferred, the title company will distribute your proceeds, typically via wire transfer or check.
A Smooth Process with Options
The great thing about settlement day is the flexibility for sellers. You don’t need to sit across the table from the buyers unless you want to. Many sellers opt to pre-sign their paperwork, allowing the process to move forward seamlessly without their presence.
Your real estate professional will guide you every step of the way to ensure settlement day goes off without a hitch. Whether you’re buying or selling, proper preparation and a trusted team can make this milestone a stress-free experience!