When buying or selling property, the closing process is a significant step. It marks the finalization of the sale, where ownership officially transfers from seller to buyer. Understanding what happens during this process can help you prepare for a smooth transaction.
The closing process explained
In Texas, the closing process typically involves several steps. First, the buyer and seller will review the final closing disclosure. This document details the financial aspects of the transaction, such as the purchase price, down payment, and closing costs. The buyer will also receive a “closing statement” outlining the funds needed to complete the transaction.
Signing the documents
Once the financials are confirmed, both parties will sign various documents. These include the deed of trust (if the buyer is financing the purchase), a settlement statement, and the warranty deed that transfers ownership of the property. The buyer will also sign a loan agreement, if applicable.
Transfer of funds
After all documents are signed, the buyer will wire the remaining funds to the escrow account, which handles the financial exchange. The seller receives the sale proceeds, minus any outstanding fees or costs, such as real estate commissions, repair costs, or unpaid property taxes.
Recording the deed
The final step involves recording the deed with the county clerk’s office. This legally establishes the buyer as the new property owner. The buyer will then receive the keys to the property, and the transaction is complete.
Real estate closings are complex, but with preparation and the right support, they can be smooth and successful.
