If you’ve purchased a home, you know what it’s like to sit on the buyer’s side of the closing table. But how does the closing process differ for sellers? To provide an idea of what to expect at closing when selling your home, we’ve comprised a list of frequently asked questions and corresponding answers surrounding this process.

1. Does the seller have to be present at closing? No, the seller does not. In fact, there are many situations where the seller has already moved to a new location and isn’t able to be present for the closing. There will still be paperwork that requires the signature of the seller, but this often can be completed prior to the closing date. The seller must sign the deed (transferring ownership of the property to the buyer) and other seller-specific documents before proceeds of the sale are released or balance of the loan is paid.

2. Who represents the seller’s side of a transaction at closing? The seller and his/her real estate agent typically represent the seller at closing. If the seller is unable to attend the closing in person, he/she can sign sign a power of attorney, allowing the closing agent to act on his/ her behalf at settlement.

3. How should a seller prepare for closing? The best way to ensure a smooth closing as a seller is to make certain the title company has correct information regarding the current mortgage and payoff amount. If a seller is non-local at the time of closing, he/she may agree to have the closing agent email the required documents to the seller, who can sign them in the presence of a notary and mail them back to the title agency.

4. What can a seller expect to pay in closing fees? In general, seller closing fees typically total around one percent of the sales price and vary depending on title agency.

Have other questions about the closing process? Talk to the team at Linear Title & Escrow today!

The entire home buying process, from mortgage application to closing, can be a bit confusing – especially if you’re a first-timer. But knowing what basic real estate, mortgage and closing terms mean helps keep you in the know throughout the entire process.

We’ve compiled a list of common terminology you’re likely to hear at different points throughout your home buying experience:

-Escrow: When funds and documents from the sale of a property are in “escrow,” a third-party (typically the title company) holds, maintains, and disperses these funds and documents to the appropriate parties during real estate settlement.

-Closing: Closing occurs when all necessary documents regarding the sale of a property are completed by both the seller and buyer sides of the transaction, including transfer of title (ownership), mortgage notes and other necessary financial commitments. This is the final step in the home buying or selling experience.

-Settlement: Settlement refers to the same activities as closing.

-Mortgage Pre-Approval: To be preapproved for a mortgage is to be approved by a bank or mortgage lender for a specific loan amount based on your credit history, income and other pertinent documentation.

-Mortgage Pre-Qualification: To pre-qualify for a mortgage is to receive a general estimate from a bank or mortgage lender on the amount of home loan you can afford, given your current income-to-debit ratio.

-Title: To have title is to own or retain rights to a property. Title is also regarded a deed or formal document indicating ownership of a piece of land or real estate structure.

-Title Defects: Title defects (also referred to as clouds on title or unmarketable title) are issues preventing proper transfer of property ownership from one party to the next. A range of title defects exist, but common examples include forgery, unknown heirs, liens, judgments and recording errors, among others. Any discovered title defects must be resolved, and title declared free and clear, before closing can commence.

-Title Search: A title search is a meticulous process of reviewing legal events surrounding the ownership history of a property. This process seeks to discover any title defects.

–Title Insurance: Title insurance are policy types that protect the mortgage lender (Lender’s Title Insurance) and owner (Owner’s Title Insurance) against financial loss should title defects arise following the closing process.

-Closing Disclosure (CD) Form: The CD Form is a formal document submitted to the buyer by the lender at least three business days prior to closing. This form outlays all financial details of the real estate transaction, including mortgage particulars, anticipated monthly payment amounts, taxes, closing fees and other financial responsibilities associated with the mortgage.

-Earnest Money Deposit: An earnest money deposit is a financial gesture put forth by the buyer, showing the seller that he/she is serious about his/her intent to purchase a property. This amount typically is held in escrow by the title company and applied towards the down payment at closing.

Have other questions about terms surrounding a real estate closing? We have the answers! Contact Linear Title & Escrow today.