Real Estate 206 – Closing (Alabama Version)

You've made it!!!

Be sure you have your payoff (if you have a mortgage) turned in, you've reviewed a copy of the preliminary closing disclosure, and you bring all parties required to sign as well as valid government issued identification for each person. If you are having someone sign for you as POA or doing a mail away, you should already know what has to happen at this point because arrangements should have already been made.

Please note, the closing attorney does not represent either side. They actually represent the lender or work as an intermediary if you do not have a mortgage involved. If you want an attorney that represents you specifically, you are welcome to hire one. Real estate agents cannot give you legal advice, so if your situation is unique then it might behoove you to do so. Most of the time buyers/sellers do not find this necessary.

In the event you have to bring funds to be able to close (hopefully this is not the case, but it does happen), make sure you know the amount ahead of time and either have the wire sent to the attorney the day prior to closing, or bring a certified bank check with you. No cash or personal checks will be accepted at closing.

After closing, be sure to turn off utilities and call your insurance agent to cancel your home owner's policy. The attorney will pay the mortgage off for you with the proceeds from the sale. Be sure to keep up with your documents from closing because you will need them for your taxes the following year.

Please note that just because you sign your papers at the designated time does not mean your funds have been processed yet. There are sometimes banking delays that cause “dry closings” to occur. Essentially everything is completed, but the wire from the lender or bank is in limbo and not deposited with the attorney/title company yet. Do not freak out – this isn’t a major issue (unless someone makes it out to be a major issue for no reason).

If all goes as planned and the agreement states such, you should now be handing over the keys! Congrats on a successful closing! Be sure to leave your agent a positive review everywhere you can if they did a good job for you. Online reviews and personal referrals are super important to real estate agents!