Purchasing a home in Minnesota could move swiftly, but expect things to involve a little more than receiving payment and signing a sales contract. Real estate transactions involve a closing process that takes place at a title company. When purchasing a home or another property, issues such as liens or tax obligations may come up, along with a few other matters. Generally, the closing process might require only a short meeting, provided everyone comes prepared.
The official closing process
Closing a home refers to the official day ownership transfers to a new buyer. A title company or attorney’s office would be the standard location where the process takes place. Real estate agents typically join the buyers and sellers at the closing, and a final walkthrough occurs before going to the closing meeting.
The closing could make it possible to walk away from the deal if there is a breach in the purchase contract. For example, if the seller agrees to empty the home and the buyer discovers the house remains filled with furniture, the buyer may ask for a credit to cover the cleanout.
Closings usually happen anywhere from 30 to 60 days after the buyer and seller sign a contract to transfer ownership. The duration could be more or less and allows the seller to get the property in order.
Tasks performed at a closing
Before a title company approves any residential real estate transaction, expect the representative to ask for two forms of ID. “Little things,” such as forgetting a driver’s license, could delay the closing.
Both parties must fill out several forms, including documents that establish how the seller receives payment. Maybe the seller would prefer a wire transfer instead of a bank check. Of course, the seller must provide the down payment and mortgage information.
Closings come with costs that appear itemized on the paperwork. And the seller should provide all keys to the new owner once as part of the process. As for the deed, the document receives an update reflecting the new owner. Soon after, the homeowner insurance companies should receive documentation detailing the ownership change.
