Understanding the Real Estate Closing Process
A real estate closing, also called a settlement, is the meeting where all parties finalize the property sale. The buyer, seller, real estate agents, lender representatives, and a closing attorney typically attend. During this meeting, you’ll review and sign numerous documents, address any outstanding issues, and complete the financial transactions necessary to transfer ownership.
Georgia law requires an attorney to conduct real estate closings, which provides an additional layer of protection for both buyers and sellers. The closing attorney reviews all documents, ensures the title is clear, prepares the closing statement, and facilitates the transfer of funds. This legal oversight helps prevent fraud, identifies potential issues before they become problems, and ensures compliance with state and federal regulations.
Key Documents You’ll Review and Sign
Real estate closings involve substantial paperwork. The closing disclosure outlines your loan terms, projected monthly payments, and closing costs. Federal law requires lenders to provide this document at least three business days before closing, giving you time to review it carefully and ask questions.
The promissory note is your formal promise to repay the loan in accordance with the agreed terms. The deed of trust or mortgage secures the loan with the property as collateral. The warranty deed transfers ownership from the seller to the buyer. In Georgia, most transactions use a general warranty deed, which guarantees the seller has a clear title and the right to sell the property.
Additional Important Paperwork
The closing statement itemizes all financial transactions related to the sale. This document shows the purchase price, loan amount, earnest money deposit, prorations for property taxes and homeowners association fees, and all closing costs. You may also sign documents related to title insurance, which protects you and your lender against title defects discovered after closing.
If you’re obtaining a loan, you’ll sign additional lender-required documents, including disclosures about your loan terms and repayment obligations. Your attorney will guide you through each document, explaining its purpose and answering your questions.
Financial Aspects of Closing
Closing costs typically range from 2% to 5% of the purchase price and cover various fees and services. These costs include:
- Lender fees: These include origination charges, application fees, underwriting fees, and discount points if you’re buying down your interest rate.
- Title services: You’ll pay for title search, title insurance for the lender and owner, and document preparation fees.
- Government fees: Expect recording fees for filing the deed and mortgage with the county, transfer taxes, and any applicable state or local taxes.
- Attorney fees: These cover legal services for conducting the closing, reviewing documents, and ensuring a smooth transaction.
Your closing disclosure breaks down these costs in detail. Review this document carefully and compare it with your loan estimate to ensure the charges match your expectations. Buyers typically bring a cashier’s check or arrange a wire transfer for their closing costs and down payment.
What Happens on Closing Day?
Most closings take between one and two hours. Your attorney will guide you through each document, explaining its purpose and answering your questions. Don’t hesitate to ask for clarification on anything you don’t understand.
The seller will sign documents transferring ownership and provide keys, garage door openers, alarm codes, and any other items specified in the purchase agreement. Once all documents are signed and funds are transferred, the closing attorney will record the deed and mortgage with the county clerk’s office. This recording makes the transfer of ownership official and records it in the public record.
Work With TOSC for Your Georgia Real Estate Closing
Taylor Odachowski Schmidt & Crossland, LLC has served clients throughout Georgia for decades, earning a Martindale-Hubbell AV rating and a reputation for excellence in various practice areas, including real estate law. Our distinguished team of attorneys boasts over 350 years of combined experience, meaning there are few scenarios we haven’t seen and navigated successfully.
Whether you’re buying your first home, selling a property, or involved in a commercial real estate transaction, we provide the personalized attention and legal excellence you deserve. If you’re preparing for a real estate closing in Brunswick or the surrounding areas, contact us today to schedule a consultation with our experienced team.
