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Closing
Closing is the final step in executing a real estate transaction.
The closing date is set during the negotiation phase, and is usually
several weeks after the offer is formally accepted. On the closing
date, the parties consummate the purchase contract, and ownership
of the property is transferred to the buyer. In most jurisdictions
ownership is officially transferred when the contract is registered
at the cadastre, or, in most US states, at the office of the County
Recorder of the county in which the property is located.
Several things happen during closing:
* The buyer (or their bank) delivers a cheque for the purchase price.
* The seller signs the deed over to the buyer, and gives them the
keys. * A lawyer or civil law notary registers the new deed with
the local land registry office. * The seller receives a cheque for
the proceeds of the sale, less closing costs and mortgage payouts.
Closing typically happens in escrow, which means that a lawyer,
real estate broker or other trusted party gets the money and the
signed deed, and arranges for the transfer. This is primarily so
that the seller can give up ownership of the property, and the buyer
can hand over the payment, without both parties having to be there
at the same time. Escrow ensures an orderly transaction, or if something
goes wrong, an orderly termination of the agreement.
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