Selling: 10. Closing!

You Did It!

This is what you've been waiting for - the last step!

In the closing process, your title company really shines. They hold all documents and handle the transfer of funds. Funds are collected from the buyer's lender, and your mortgage is paid. As that happens, the title company records the documents and signatures and handles the transfer of ownership from you to the buyer. Be sure to bring photo identification and your spouse with photo ID if you're married - you may need to go through the steps of quitclaim deeds. You will also need your real estate deed, if you haven't already provided it to the title company. At closing, review the settlement statement the title company has prepared for you very carefully. This details the exact funds that are changing hands and shows what proceeds you will receive.

You will receive the proceeds from the sale about two business days after the buyer's closing date, which is the date specified in the sales agreement, counteroffer and amendments. Because mortgage accounts accrue at different times and rates change, there will probably be a little money left over to your credit in your mortgage account that you will not receive at closing. Be patient, as some time after closing a check will be sent to you. At your closing, ask if you can leave the keys to the property with the closing officer, who will hold them until the funding date (the buyer does not receive the keys at their closing, but will upon 'funding').

Congratulations! You've sold your home by owner.

Taxes
Please remember that the sale of your home has important tax considerations, as mentioned in our terms of use. The title company will be reporting the details of your transaction (proceeds) to the IRS. You may choose to purchase another property, using a 1031 exchange, or you may pay taxes on the proceeds. Tax planning and strategy are the last piece of advise that you'll need regarding this transaction. See this IRS page and consult a tax attorney.