Real Estate Closing

real estate agent

What Actually Takes Place At The Real Estate Closing?

With real estate transactions being such a large purchase, the actually process of purchasing a home is called the closing. Using a notary for closing on a property is a very efficient way to get through the closing process on a new home without paying the high fees associated with a full real estate attorney.

What Happens At A Closing?

The final step in purchasing a new home is at the closing table.  Closing on a home is when all of the hard work and stress in the home buying process finally comes to fruition.  Closing on a home is when all of the final paperwork is completed and the title on the new property is transferred.

Who Are the Participants in a Closing?

When you attend a closing on a property, there are a multiple positions being represented.  They buyer attendants as they are the ones acquiring the new home.  The buyer has the most paperwork to sign as they are usually implementing a mortgage on the property.

Home Buyer

For most new home purchases, when a mortgage is on the new property, a package is generated from the lender.  A package is simply a group of documents that make up the legal transaction of the implementing the mortgage.  That package is sent to the closing attorney who makes sure that everything is in place and the notary oversees the signing of all of the documents.

Home Seller

In many instances the home seller will attend the closing but that is always not the case.  The home seller may show up at a previous time to sign the conveyance or Act of Sale, which as as the legal document that transfers the property from the previous owner to the new home buyer.  They will also be required to sign a HUD1 (which now has been renamed).  the closing attorney or notary will usually have a handful of other documents for the seller of the property to sign, but these two are the most important.

The Closing Notary

Usually it is more cost effective for a closing notary to oversee the actual documents being signed.  The notary’s job is to verify that each person signing a document, is indeed who they say they are.  They usually will take a copy of some form of the home buyers identification as well as the home-sellers identification.

Closing Attorney

Most real estate transactions require the use of a real estate attorney to oversee the process and to generate many of the closing documentation.  The closing attorney makes sure that all of the required documents are legally prepared and meet the federal, state and local requirements as well as the requirements of the lender.


The lender plays a crucial role in the closing process.  The lender provides the funds for the real estate transaction.  They prepare the “package” which contains all of the required loan documents that the closing attorney will oversee and the notary will witness being signed buy the home purchaser.

Insurance Company

In almost every case, an insurance company is needed to insure the new home.  The lender will usually require that insurance cover all aspects of damage to the new property as the property itself acts as collateral for the mortgage.  All of the required insurance documents are prepared prior to closing to take effect the day of the closing.  Once again, the notary will oversee the signing of the insurance documents and insure that everyone is who they say they are.

Other Miscellaneous Players

Their may be many other people or companies that play a part in the closing on a new property.  For instance, the buyer may have a new home warranty that goes into effect the day of the closing and in turn must be paid for.  In that instance, the home warranty documentation is filled out and payment of the new home warranty will usually come out of the proceeds that the seller gets and is deducted on the HUD1.