Closing is a real estate term used to refer to the act of transferring ownership of property from the Seller to the Buyer.
From the time Escrow is opened, an Escrow Officer assigned specifically to help with the transaction will coordinate all the details. The information on the sales contract will help the Escrow Officer begin a search on the property. The search is done to find out specific information about the property such as who is on title and any outstanding mortgages, liens, restrictions and easements on the property. A preliminary title report will also show the necessary documents needed to officially convey title to the Buyer.
The Escrow Officer will work together with all parties involved to prepare the Closing Documents. The Escrow Officer also works closely with the Lender so that Loan Requirements are also met. Other factors involved during the escrow process are Home Inspections, Homeowner’s Associations, Condominium Associations, Termite Inspections, Land Surveys, and Homeowner’s Insurance Policies. For a more detailed description of the escrow process please visit Buyer’s Avenue.
Throughout the entire process, the Buyer and the Seller will be guided by the Escrow Officer and their respective Agents. Both sides should respond diligently to the contract deadlines and cooperate with everyone involved or there could be delays.
Prior to closing, the Escrow Officer will prepare a Settlement Statement for both parties. This statement identifies all the monies, costs, and pay offs involved with the transaction and allocates them accordingly. The Buyer’s cash funds required for closing are calculated at this time. The Buyer will be required to have that amount delivered to the escrow company in the form of a Hawaii cashier’s check or wire transfer. These funds are due to Escrow prior to the closing date. The Seller is given the amount of the proceeds from the sale less any closing costs.
Once all the documents have been drawn and final settlement figures are in, the Buyer and Seller schedule their Signing appointment with the Escrow Officer. Signing usually takes place at the Escrow Office. The Buyer, the Buyer’s Agent, and the Lender will meet with the Escrow Officer and the Buyer will sign all the escrow documents as well as the mortgage documents for recording. The Seller and the Seller’s Agent will meet with the Escrow Officer to sign the escrow documents as well. The Buyer and Seller schedule signing for separate times. The Settlement Statement is explained and all the escrow documents are explained in detail. Both parties should bring a picture ID to the Signing appointment. Once the documents are signed, those requiring notarization are notarized by the Escrow Offer.
After all documents have been signed and the Buyer’s cash funds are received by the Escrow Company, the Escrow Officer processes the documents and sends the deed, mortgage and other documents to the Recording Office. These documents should be submitted to the Recording Office within 2-3 days prior to the scheduled closing date. Once the documents have been recorded, the title policies are issued to the new owner and the Lender.