Preparing to close starts with the title work.  A title search can be ordered even before a Contract for Purchase and Sale is procured, if title problems are anticipated.  The title search returns a list of documents upon which the Seller's title is based (reproduced from microfilm or digitally scanned).  Those documents must be examined to determine that the Seller does in fact hold marketable record title, free of liens such as special assessments from municipalities, judgment liens, etc.  Any doubts or defects in those documents must be noted and resolved. 

Once the Contract is signed and delivered, the bulk of the work begins.  The closing proceeds strictly in accordance with the terms of the contract, both in terms of the financial terms of the transaction, and the procedure.  Final decisions must be made by the Buyers as to the form in which they wish to take title, which determines the manner in which title is passed upon the death of one of the owners.  In a tenancy in common, if one owner dies, her interest goes through probate, to her heirs.  In a joint tenancy (which includes a tenancy by the entireties, i.e., between married people), if one owner dies, title passes automatically to the other owner, without need for probate.

Many forms of due diligence take place during the interval between contract formation and closing.  Property inspections, verification of zoning and building regulations, and other matters of importance to the Buyer are verified by (or on behalf of) the Buyer.  At the same time, the closing agent works diligently to procure commitments from the condominium or homeowner's association as to fees owed and consent to the transfer of title to the Buyer.  The amount and payment status of taxes is determined, so that they can be pro-rated between the parties at closing, in the proper amounts.  Other items, such as rent or insurance may be pro-rated.  Evidence of the Seller's good title is forwarded to the Buyer or Buyer's attorney for review.

Interaction with lenders takes a significant amount of time and effort.  Payoff amounts and information for any existing loans must be procured, along with conditions and requirements of the Buyer's new mortgage.  Those terms play a critical role in closing the transaction.

As the financial details of the closing are assembled, they must be organized into the preliminary HUD-1 Settlement Statement, which is distributed to all interested parties for their review.  An extensive amount of communication and coordination with a long list of vendors, parties and others must be accomplished.

The Buyer's mortgage lender typically delivers the loan package very shortly before closing.  The closing agent must quickly review that extensive list of documents, instructions and requirements, determine if there are any new requirements that have not been previously communicated, and incorporate all information into the closing.

Final closing documents are produced (including a commitment to issue Title Insurance), a final HUD-1 Settlement Statement is produced and  distributed for final approval, and the closing is conducted.

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