The closing is the final step in a Wisconsin real estate transaction. It’s when the buyer and the seller finalize the sale and sign the closing documents. Here’s an overview of what actually happens.
Reviewing paperwork, including loan documents
The first step at closing is reviewing all the relevant documents. Probably the most important is the loan document, which includes information about how much you’re borrowing and what your interest rate will be. Other documents include the purchase and sale agreement, title insurance policy, settlement sheet (that includes all final costs), property survey, homeowner’s association documents if applicable, warranty deed, and quitclaim deed.
Title search and insurance
Once you review and sign the closing documents, your attorney or title agent will perform a title search. This is to make sure that there are no liens on the property, such as for unpaid taxes, and that nobody else has rights to it. The title company will then issue an insurance policy on the home, which protects the buyer in case there are any title defects missed during the title search.
Covering necessary costs, including the down payment
At the closing, you’ll need to provide a down payment and cover all expenses related to the purchase of the real estate property. This includes taxes, title insurance fees, escrow fees if applicable, appraisal fee, credit report fee, document preparation fee, and any other third-party costs such as septic inspections or termite reports.
Transferring of deeds and keys
Once everything gets approved, it’s time to transfer ownership of the deed from seller to buyer. This is usually done by signing new documents at the closing table. The title company will give all parties a copy. Once that’s done, the buyer will receive the keys to their new home.
There are many things that need to happen at a real estate closing. These are just the basics. Whether you are the seller or buyer, remember to always ask questions whenever something doesn’t seem clear before you sign; this will ensure that you fully understand what is happening.