The closing meeting is where the ownership of a property is officially transferred. Generally, the closing is attended by the buyer, seller, a real estate agent and the closing agent which may be an attorney. If the buyer is borrowing money to complete the purchase, a representative of the lender may also attend. At the closing, open issues are settled, the closing statement is verified, and all necessary documents are signed. .
While good closing agents try to help buyers through the complicated aspects of the closing, an attorney's assistance can be invaluable in determining that closing costs are allocated fairly. Closing costs can vary.
The closing costs cover a large number of one-time fees. They also include the first month's payment for homeowner's insurance, property taxes, mortgage interest, and real estate tax escrow. Some of the fees covered in closing costs include but are not limited to:
- Attorney fees
- Escrow fees
- Loan origination fees
- Appraisal fees
- Recording fees
- Revenue Stamp
- Survey fees
- Document preparation fees
The parites are free to allocate who pays what costs, usually, the seller pays the first abstract update, the deed preparation, the revenue stamp and prorated taxes. The buyer pays costs associated with obtaining the mortgage funds and the recording costs. The closing fee to the attorney can be paid by either or both parties.
At a closing, the seller and buyer will provide items required by the contract, such as proof of homeowner's insurance, warranties, and other documents. Once both parties have approved the closing statement and all documents, the seller and buyer sign the statement, the buyer signs the mortgage, and the seller signs the deed and transfers ownership.
The closing agent provides the buyer with a settlement statement detailing the closing costs, and then records the deed and (when applicable) the mortgage.
The buyer usually receives the following documents:
- Settlement statement
- Mortgage and mortgage note
- Copy of the deed
- Truth-in-Lending statement
- Sales contract
- Keys to the property
- Any required affidavits
If you would like to schedule a initial consultation contact an Iowa real estate attorney, representing clients in Elkader, Iowa at the Dillon Law P.C. Give us a call at (563) 578-1850 or complete our inquiry form.