The last step in your journey to homeownership is the real estate closing process. Whether you’re a first-time home buyer or selling and buying at the same time, the process can be complex. A home is typically the most expensive and most important expenditure you’ll make, so the decisions during the closing process matter.

For the real estate closing process, you’ll need a team of professionals to educate you so you’re making the most informed decisions. A real estate closing attorney is one part of that team, helping you with all the legal implications of purchasing a home.

Offer to Purchase and Contract

This is the document that guides the terms and timeline of buying a home. Once it is accepted by the seller, the real estate closing process begins. Also, you should be aware than in North Carolina, a contract to purchase must be in writing.

At this time, you may also provide the seller with a due diligence fee, which is an indication to the seller you are serious about the offer and the seller feels comfortable in taking the property off the market. Please note, this is nonrefundable.

Inspections and Appraisals

Next, after the contract is in place, you’ll need to schedule an inspection and appraisal. Those will be imperative in determining what the true value of the home is and what if any repairs need to be made. Once repairs are identified, you’ll negotiate with the seller on what needs to be completed. During this time, depending on the property, it may be prudent to do a survey to determine if any encroachments are on the property.

The Role of the Closing Attorney

Once a contract has been accepted, it’s time to choose a real estate firm to handle the legal details. In N.C., a home purchase must be processed by a law firm. That’s not the case in every state, so if you’re new to the area, keep this in mind.

In N.C., closing attorneys do quite a bit of work in the real estate closing process. Those duties include:

• Perform a title search to ensure the sellers are able to deliver a clean title to the property
• Review of the contract
• Checking for liens or past due taxes
• Updates title records
• Prepares loan package documents (e.g. Settlement Statement)
• Records the Deed and Mortgage

The Day of Closing

The closing will take place at the attorney’s office, where you’ll have lots of paperwork to sign. You’ll need two forms of identification as well as your closing funds, either via certified check or wire transfer, depending on the amount. It is our Firm’s strict policy that any funds received over $1,000 must be in the form of a wire transfer. You’ll sign off on all the important documents, including your mortgage paperwork and the new deed. You walk away with the keys to your new home, and the closing firm updates and records documentation as necessary.

If you have questions about the real estate closing process, please contact us.