The “Closing” is the final step in the process of buying/selling or refinancing a home. It’s when the seller and buyer or borrower sign all documents needed to complete the transaction and monies are collected and disbursed accordingly. The closing can occur once all of the conditions and requirements of the real estate contract, title commitment and lender have been fulfilled.

The closing can take place almost anywhere. In the office of the Realtor, Lender, Mortgage Broker, Attorney or Title Company are just a few examples. The Title Company typically coordinates the signing time and location, however a Realtor or Lender may also do so. The Buyer and Seller or Borrower should always bring proper photo identification to the closing since their signatures will be notarized. Often times the Seller and Buyer or Borrower are out of state.  In this case documents must be sent out via overnight courier or email for signing. This is known as an “Escrow Closing.” In an Escrow Closing documents are signed in advance and the actual “Closing” occurs on the date set forth in the contract.

Documents for closing are often available for review prior the closing. When the closing takes place the Settlement Agent will explain each document thoroughly.  Never sign a document that is not understood. All of the closing costs are outlined in the HUD1 Settlement Statement. The HUD1 Settlement Statement also sets forth the total amount that the Seller will receive as well as the amount of funds the Buyer will need to bring to closing.

The Settlement Agent is responsible for collecting and disbursing all monies involved in a transaction.  All funds must be in the form of “good funds”. This means the funds must be in the form of a wire transfer or Cashiers check. The buyer should never bring a personal check to the closing. It is customary for the Settlement Agent, Lender or Realtor to let the Buyer know ahead of time how much money is needed for closing so that the wire can be sent or a Cashier’s check can be issued.  Once all funds are received and all conditions and requirements are fulfilled, the Settlement Agent is then authorized to release funds.  Often times, funds are received late in the day.  This may prevent a wire transfer from being sent on the day closing because of bank wire cut-off times.  In this event, the wire transfer would be sent out the following business day.

Once all of the above steps are finished, the closing is complete! Copies of all singed documents will be sent out to the Buyer, Seller and Agents in a few weeks.

Documents expected to sign at closing may include, but are not limited to the following:

Purchaser/Borrower

  • HUD1/ALTA Settlement Statement
  • Closing Instructions
  • Buyers Affidavit
  • Utility and Tax Proration Agreements
  • Name Affidavits
  • Escrow Instructions
  • Loan Documents

Seller

  • HUD1/ALTA Settlement Statement
  • Closing Instructions
  • Conveyance Deed
  • Seller’s Affidavit
  • Survey Affidavit
  • Utility and Tax Proration Agreements
  • Bill of Sale
  • Name Affidavits
  • Escrow Instructions
  • Non-Foreign Affidavit
  • IRS Form 1099
  • Colorado Department of Revenue Form 1083
  • Commission Agreement