Settlement & Closing Procedures
Real Estate settlement typically takes about 30 days to process the buying and selling sides of a transaction. Keep in mind, that funds will not get disbursed until the real estate transaction has been recorded (about a 1 or 2 day time frame after closing has occurred). Below, you can view some of the steps involved with this process.
1. Review the status of the title in the title commitment, resolve any exceptions to the title, and review the purchase agreement to identify any requirements in it in order to ensure compliance.
2. Verify the payment of existing loans secured by the real estate and verify the amount of and then calculate the prorating of special assessments and taxes on the property.
3. Obtain an updated title insurance commitment to the date of closing, prepare the required checks, deeds, affidavits, and obtain any authorization letters needed.
4. Establish a time and place for the closing, conduct the closing, and ensure that all parties properly execute all appropriate documents and meet all commitments.
5. Collect and disburse funds for the parties, hold funds in escrow pending satisfaction of certain commitments, prepare the HUD settlement statement, the deed of trust, mortgage notes, the Truth-in-Lending statement, and purchaser’s affidavits.
6. Record the appropriate documents as required under law.
7. Provide real estate abstracting services: conduct title search and prepare abstract of title.