needs to be paid off on the day of settlement.
Sometimes, upon performing this due diligence, the settlement company will discover things that you as the owner never knew existed, or they will encounter mistakes that were once made by other banks or companies. The settlement company is usually able to get information easily and schedule your settlement for the date originally planned. This process is enabled and made secure through the closing task, where an escrow or a settlement agent will be hired as a disinterested third party. The escrow or settling agent will take all 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 S UYER 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, if 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
100
Powered by FlippingBook