When a person is buying or selling a property in Florida, the last step in the process is the closing. If it is their first time completing this type of transaction, they may have questions about this process.
The closing is where the parties meet to complete the transfer of property ownership.
Real estate closing
First, before the closing occurs, the buyer should receive a closing disclosure from the lender. This lays out the final terms and the costs of any mortgage loans. The buyer and seller will also review the bill of sale and other transfer documents.
The buyer pays the balance of the purchase price, generally by transferring the funds or by check. The seller then transfers the ownership of the property to the seller by signing the deed. All of these must be correct before the parties go forward.
The buyer pays closing costs and fees, including search fees, title insurance and recording fees. The deed will be recorded with the clerk’s office and the property will be officially handed over to the buyer.
Common issues
Several issues can come up at closing. The most common is a financing issue. If the buyer’s loan falls through, the closing can be delayed or canceled. If there is a problem with the title, like a lien on the property or other pending disputes, that can prevent closing.
If the buyer discovers issues with the home during an inspection that the seller did not disclose, the sale may be canceled. If possible, it is helpful to resolve these issues before the parties meet to close on the property.