money, documents, and any other items involved with the closing process from each party involved. From there, the money will be paid out to clear the title, furnish, and pay off any lienholders or old lenders involved. As well, they will pay the real estate agents and any other service providers, such as an inspector for the home, who were involved in the overall transaction.
WHAT THE BUYER AND SELLER PAY AT CLOSING
At closing, the buyer will usually pay for all lender closing costs, title fees, up-front interest (if any), escrows and one-half of the transfer taxes. The seller will usually pay for all real estate commissions (if any), closing fees and one-half of the transfer taxes. They will also pay off any mortgages against the property and any outstanding water bills.
WHERE THE CLOSING WILL TAKE PLACE
The closing process will take place within the office of the escrow or the settling agent, who is typically the title’s insurance company, which insures the buyer’s title to their new property. However, should it be requested, certain escrow and title companies will send a mobile escrow for handling the closing process in a location which is convenient to all of the parties involved with the transaction. In some cases, however, the lender of the buyer will host and close while acting as the escrow, or they will bring in an escrow or notary company employee to act as an escrow. The buyer’s or seller’s attorney can offer his or her office, but restrictions involving client trust accounting can make it impossible for either attorney to disburse the funds straight away, which is why an escrow company will handle all the transferring of funds. Otherwise, the escrow will take on closing responsibilities, taking and disbursing all funds while explaining each document.
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