It might seem that once a sale agreement has been signed that the selling process is complete. Not only is it not over yet, but some of the most complex aspects of a real estate transaction now begin.

Once a contract for the purchase of a home has been accepted, a series of inspections and checks are typically required to satisfy buyers and lenders. I help owners complete the transaction process by assisting with the many requirements found in a typical sale agreement.

What’s in a Sale Agreement?

A sale agreement sets a purchase price for the home and a series of terms and conditions. For instance:

  • Contracts routinely depend on the ability of a buyer to obtain financing and/or sell their current home, which is why most sellers prefer buyers with mortgage pre-approval letters.

  • A growing percentage of transactions involve a home inspection, or a physical review of the home by a trained and independent observer. Generally the buyer’s agent arranges the inspections, which the buyer typically pays for.

  • Lenders will establish numerous conditions before granting a loan. They will want a title exam, title insurance to protect against title errors, inspections, surveys and an appraisal to assure that the home has sufficient value to secure the loan.

When Should You Close?

With online transaction management now available, closings can occur within a week in some areas - at least in theory. In practice, it takes time to arrange financing, conduct inspections, obtain appraisals, locate replacement housing, contact movers, pack and actually move.

While instant closings are not practical, neither are closings too far in the future. The problem with closings past 60 days is that loan rates are difficult to lock in. If mortgage rates go up, it's possible that the buyer will no longer be able to afford the home and thus the deal may fall through.

The result of these considerations is that most homes close within 30-45 days after a sale agreement has been signed.

Completing the Agreement: What are Your Final Obligations?

It's important to look at the sale agreement and review your obligations. For instance, if you have agreed to paint a room or replace the dishwasher, such work must be completed before closing. We will discuss your agreement and the steps that you need to take to complete the transaction.

What Happens During Closing?

Before closing, buyers typically have a final opportunity to walk through the property to ensure that its condition has not materially changed since the sale agreement was signed.

“Closing” is also known as "settlement" or "escrow." It is usually a brief office meeting to sign and complete the paperwork needed to finalize the sale transaction. One of the best parts of settlement is that there is very little that buyers and sellers need to do. All necessary papers have been prepared by lenders and lawyers. This paperwork reflects the sale agreement and allows all parties in the transaction to verify their interests.

Settlement is increasingly computerized and automated. In many cases, buyers and sellers don't need to attend a specific event; signed paperwork can be sent to the closing lawyer via overnight delivery. Some areas have services that allow most of the transaction to be completed online. If buyer and seller are present, they may be at the same table, or they may complete their papers separately.

Whatever the process, the outcome of the closing is the following:

  • Property title is transferred from seller to buyer.

  • The buyer receives the keys to the property.

  • The seller receives payment for the home.

  • From the amount credited to the seller, the Lawyer subtracts money to pay existing mortgage and other transaction costs.

  • Deeds, loan papers, and other documents are prepared, signed and filed with Land Title offices. Usually the lawyer also completes the paperwork needed to record the loan.

  • Transfer taxes are paid and other claims settled, including closing costs, legal fees and adjustments.

The lawyer handles both the settlement papers and related documents.

To request a free consultation call 519-778-0737 or email