Homeowner’s Closing Process

UPDATED: Jul 13, 2023Fact Checked

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Jeffrey Johnson

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 13, 2023

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UPDATED: Jul 13, 2023Fact Checked

The time period between giving a good-faith deposit check and signing the closing papers is a set time period (normally 30, 60, or even 90 days). Since your deposit check will be cashed, be sure to have sufficient funds in your account. Your deposit money will go towards the purchase price if the sale goes through. But if you back out of the deal for a reason not set forth in the contract, the seller may be entitled to keep the deposit money.

Redirect URLing Finance and Inspection Contingencies

During the time period before the closing date, the terms of the purchase contract are addressed. The contract usually includes a financing contingency and inspection contingency, and a provision that the buyer will confirm title to the property free of defects. The inspection provision allows the buyer to have the property professionally inspected. The financing provision gives the buyer time to secure mortgage approval. Because this is often a lengthy process, the buyer should begin seeking financing immediately after the contract is signed.

A Legal Opinion on the Title Report

When you receive the title report, review it carefully. A real estate attorney’s examination and review of any troublesome items in the report would be a prudent move. You want to be certain you are getting clear and marketable title to the property. And before deciding how to hold title in the property, it would be beneficial to consult an attorney familiar with ownership and estate planning issues.

Last Steps in Closing Process

During the closing period be sure to comply with any state or local ordinances that come into play in property ownership transfers. Line up homeowners insurance and schedule a final walk-through inspection to be sure the house is what it should be before taking over ownership.

Doing a timetable of dates, deadlines, and action to be taken is very helpful. Read the contract carefully. Sometimes the contract will state that failure to object is deemed approval, so the buyer needs to be “proactive” on the items before any deadline or they are waived.

Case Studies: Homeowner’s Closing Process Insights and Examples

Case Study 1: The Buyer’s Deposit Dilemma

John, a prospective homebuyer, found himself in a challenging situation when he decided to back out of a real estate deal after providing a good-faith deposit. Despite not proceeding with the purchase, the seller insisted on keeping the deposit money. John faced potential financial loss due to unclear terms in the contract.

Case Study 2: Navigating Finance And Inspection Contingencies

Sarah, a first-time homebuyer, encountered finance and inspection contingencies during the pre-closing period. She realized the importance of promptly addressing these contingencies to secure mortgage approval and conduct a thorough property inspection. Sarah learned that time management and prompt action were crucial to ensure a smooth closing process.

Case Study 3: Ensuring Clear Title And Ownership

Alex, a property buyer, faced challenges regarding the title and ownership of the property after receiving the title report. Concerned about potential issues, Alex sought legal assistance and had a real estate attorney carefully examine the report.

This case highlighted the significance of obtaining clear and marketable title while seeking expert advice on ownership and estate planning matters.

Case Study 4: Finalizing The Closing Process

Emily, a homebuyer, approached the final steps of the closing process. She diligently complied with state and local ordinances governing property ownership transfers. Emily ensured she had homeowners insurance in place and scheduled a final walk-through inspection to verify the property’s condition before assuming ownership.

By carefully reviewing the contract and meeting specified deadlines, Emily avoided potential complications and ensured a successful closing.

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Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Insurance Lawyer

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

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