I. What is a closing?
The residential real estate closing is a meeting of the buyer and seller, usually at an attorney's office, to execute all documents necessary to transfer title and establish the mortgage. Real estate agents generally are present and the loan officers also attend closings in some cases.
The closing attorney represents the lender at closings and has no attorney-client relationship with the buyer or seller, regardless of who is paying for the closing costs pursuant to the real estate contract. Although most closings do not have any attorneys present on behalf of the buyer or seller, other attorneys are always welcome to help facilitate the process.
II. What do I bring to the closing?
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Buyer brings:
Note: Funds to close should be wired prior to the closing date. Any deficit between the funds needed at closing and the wired amount may be covered by certified funds, i.e. - bank check, or, if approved by the firm prior to closing, a personal check. Checks from an IOLTA escrow account of another Georgia law firm may also be acceptable. Personal checks can never be accepted for amounts over $5,000.00.
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Seller brings:
Note: The termite letter is usually issued by a termite company within 30 days of closing. Merely having a termite bond is not sufficient.
III. What costs are not usually on my Good Faith Estimate?
- Escrow accounts:
The closing attorney will calculate the exact amount needed to establish a borrower's escrow account on the day of closing, based on the date of closing in relation to when the next property tax bill is due. - Property taxes:
The annual ad valorem property taxes will be prorated on the day of closing, with the seller owing until closing and the buyer thereafter. This also applies to homeowner's association dues, sanitation assessments and municipal taxes. - Owner's title insurance:
The lender's closing costs will include a mandatory lender's title insurance coverage. The buyer, as owner, will need to purchase his own title insurance to protect his new investment. Although optional, owner's title insurance is extremely important to have and is generally recommended on all new purchases. It is a one-time expense, is effective the day of closing and lasts forever. If the chain of title involves a prior bankruptcy, divorce, estate or foreclosure, title insurance protects against the claim of third parties. Forgeries, mis-indexing in the record room and other title defects are also covered.
If you have any other questions or concerns about your upcoming real estate closing, please call the office where your closing is to be held and we will refer your call to the appropriate person to answer your inquiries.
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