Real Estate Closing
Real estate closings are complex events that take place during the final stages of a real estate transaction. These events often require multiple documents to be signed and the buyer and seller receive loan proceeds from the lender. In return, the buyer grants the lender a lien on the property. The parties involved also pay fees to real estate agents and other parties. During the closing process, both parties sign numerous documents and exchange payments. The following are some common documents that are involved in a real estate transaction.
A deed is the legal document that transfers ownership of real estate. A deed contains the names of the buyer and seller and a description of the property’s legal description. One of the most common types of deed is the warranty deed, which guarantees the seller’s right to sell the property without any encumbrances. A mortgage is an agreement that places a lien on the real estate as security for a debt. A promissory note is a contract that the buyer and seller agree to sign.
Another important document is the power of attorney. An attorney in fact is a person who is authorized to sign certain documents for a specific person or party. The power of attorney must be specific to a property. The power of attorney must include the names of all parties involved in the transaction and the address of the property. Depending on the type of transaction, different powers are granted to an attorney in fact. If the POA is signed by the buyer, the attorney in truth is authorized to sign all buyer documents.
A notary agent is another vital component of a real estate closing. A notary is a person responsible for verifying that the transaction is done correctly. He ensures that the documents are sworn to the highest standard by signing them. A notary agent can also provide peace of mind for the buyer. While notaries can only serve as a witness at the closing, they are the only people who can make the final decision on a property.
The notary has a crucial role in the real estate closing process. Known as the notary signing agent, he or she ensures that the entire process follows the law and is legally binding. Therefore, a notary signing agent can help the home buyer feel secure about the transaction. However, a notary can also provide peace of mind in the event of a real estate transaction. If a notary is involved in the closing, the lender will need to provide an electronic version of the document.
The closing process can seem long and complex. A real estate attorney can help protect the interests of both the buyer and seller. For example, a real estate agent can advise the buyer on the terms of the contract, the fee structure, and the title search. A title search can also give the buyer an idea of the property’s owner’s eligibility to sell the property. A seller’s attorney can be an asset to a buyer and a liability for the transaction.
