Navigating the final steps of a property purchase or sale requires clear preparation. Understanding the closing process and knowing exactly what items to bring ensures a smooth, stress-free transaction for buyers, sellers, and agents alike.
Here is a step-by-step overview of what happens during a real estate closing, followed by an essential real estate closing checklist.
Step-by-Step Overview of the Real Estate Closing Process
1. Identification & Notarization
The closer greets all parties and verifies required government-issued identification to notarize official legal signatures.
2. Loan Document Review
The closer guides the buyer through the lender’s loan documents for signature, a process that typically takes about 40 minutes.
3. Lender Approval
Any required funding conditions are submitted to the lender for final authorization and approval.
4. Real Estate Document Execution
The closer reviews all transaction documents for accuracy. The seller signs the Warranty Deed, which officially transfers property title to the buyer.
5. Funding & Disbursement
The buyer and lender provide certified good funds to the title company, and the closer disburses payments to the appropriate parties according to final closing instructions.
6. Document Delivery Options
Clients choose their preferred method for receiving signed copies of all closing documents—either digitally via secure email or physical paper copies before leaving the office.
7. Key Transfer & Recording
House keys are transferred to the buyer. Immediately following the closing, the settlement agent records the Warranty Deed, Deed of Trust, and related instruments with the County Clerk and Recorder.
8. Title Policy Delivery
The owner’s title insurance policy is generally issued within 30 days of closing. Buyers should store this vital document securely alongside their permanent legal records.
Essential Real Estate Closing Checklist
To prevent delays at the closing table, ensure all buyers and sellers bring the required documentation, including but not limited to:
- Primary Photo Identification: Valid government-issued ID (driver’s license, state ID card, or passport). If a name change has occurred due to marriage or divorce, notify your closer prior to closing and provide supporting legal documentation.
- Secondary Identification: Lenders frequently require buyers to present a second form of ID.
- Estate Documents: If a party on title is deceased, bring any required documents specified in the title commitment (e.g., certified Death Certificate, Letters of Appointment, or Personal Representative’s Deed).
- Certified Good Funds: Colorado law requires buyers to provide certified good funds at closing, delivered via electronic wire transfer or a cashier’s check made payable to Land Title Guarantee Company.
- Taxpayer Information: Sellers must provide their Social Security Number or Tax Identification Number (TIN) to complete mandatory IRS tax reporting forms.
- Keys & Access Items: Sellers should bring all primary house keys, garage door openers, and access codes to transfer to the buyer.
Disclaimer: This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal or accounting advice or other expert assistance is required, the services of a competent professional should be sought. © Copyright, 2016, by Land Title Guarantee Company. (005-0016)
