Keller Williams Integrity - Head for Home Team

What Happens On Closing Day (Video)

What Happens On Closing Day (Video Transcription)

Hi everyone, it’s George Belleville here. I’m a realtor in Maryland and I’m creating this video because I wanted to explain what happens on settlement day or closing day. There are different ways, different phrases people use for that, but that’s basically the day when you go from being under contract to actually purchasing the home and for the seller selling the home and no longer owning it. We call it settlement, we call it closing, some places call it going in escrow, but it’s all the same thing.

I’m not going to get into the details of the actual closing statement. I’ll do another video on that, but I just wanted to talk about the process. So what will happen just from the beginning of the day to the end of the day.

  • Walkthrough:
    • At the beginning of the day, at some point before closing, the buyers will do what’s called a walkthrough. And I have another video about that.
    • This is their chance to look at the house and make sure it’s the way it should be.
    • Generally, the buyer’s agent will do the walkthrough and take the key from the lockbox. This prevents the listing agent from being left with an extra key.
    • The buyer’s agent will notify the listing agent that everything is okay with the property. If not, that’s another video. But usually, things are fine, and the walkthrough is successful.
  • Closing:
    • The title company takes all of the funds that come from the buyer’s down payment, the earnest money deposit, and the wired money from the lender, and it all goes into one account.
    • They go through the contract and all the documents to ensure the seller actually owns the property, check for any overdue bills, property taxes, etc. This is part of the ALTA statement (another video will cover this in detail).
    • They ensure the terms of the contract are carried out, doing the math for the dollars in from the buyer and the dollars out to the seller.
    • In Maryland, by law, the buyer has the right to choose the title company. The title company is a neutral third party ensuring the contract terms are met and funds are properly dispersed.
    • The title company makes sure the seller has clear title to the house, which is why they have title insurance.
  • At the Table:
    • The title company representative (sometimes an attorney, sometimes a settlement officer) sits at the head of the table.
    • Buyers sit on one side and sellers on the other for efficient paperwork flow.
    • Sellers have fewer documents to sign, including the deed and some financial disclosures (tax documents, etc.).
    • Buyers have all of that plus loan documents, which can take longer.
    • Sometimes agents and loan officers are present, but it’s not required.
  • Paperwork and Signing:
    • They go over the ALTA, which is the line-by-line ledger of where the money came in, all expenses, and what’s left or what the buyer owes.
    • They go through mortgage, deed issues, title insurance, correction clauses, etc.
    • When the buyer signs the deed, the sale takes place. It’s a significant moment, though often under-celebrated.
    • Title companies may provide paper copies, electronic copies, or both of all documents at closing.
  • Exchange of Items:
    • At closing, the seller typically hands over keys, remotes, garage codes, gate codes, and any other necessary information (trash day, recycling day, etc.) to the buyer.
    • The seller must be completely out of the house with everything gone before closing that day.

Hopefully, that makes sense. There are some more intricate parts of this process that I’ll cover in other videos. If you have any questions, let us know. You probably have our contact information, but if you don’t, it should be down below. Have a great day!

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