The final step in Pennsylvania real estate sales transactions is what legally is known as the closing. If you are like many people, you undoubtedly have heard the term closing but you may not really know what is involved in that process. There is a trio of major elements associated with a real estate closing in Pennsylvania:
- Transfer of title
- Distribution of purchase proceeds
- Signing of mortgage note
Transfer of title
The key step taken at closing, the final step of real estate transactions, is the formal transfer of title from seller to buyer. Once the title is transferred in this manner and the other steps associated with the closing are completed, the title is then filed in the office of the county recorder where the real estate property is located.
Distribution of purchase proceeds
During the closing, the purchase proceeds are distributed. In other words, the money due to the seller pursuant to the terms or the real estate contract is tendered to that individual or entity.
Signing of mortgage note if property is financed
More often than not, financing is involved in the purchase of real estate. For example, a person purchasing residential property will have obtained a commitment for a home mortgage loan in advance of the real estate closing. At the real estate closing, a mortgage note is executed or signed by the purchaser of the property, if this instrument has not been signed by the buyer previously.
If you have questions about real estate transactions, including the closing process, a Pennsylvania real estate attorney can assist. The closing process can be confusing and challenging to navigate alone, especially for first-time homebuyers. An attorney can inform homebuyers of what to expect from the start.