NEW REALTORS GUIDE TO CLOSING
WHAT ARE THE NEXT STEPS AFTER OBTAINING A SIGNED CONTRACT
Once you have a signed contract, the next step is to ensure that all the terms outlined in the contract are fulfilled. This includes any deadlines, deliverables, and payment terms.
First, review the contract and make sure you understand all the terms and conditions outlined in it. It is important to ensure that all parties have a clear understanding of the agreement and their obligations under it.
Next, it is important to establish a timeline and set deadlines for completion. This includes outlining the specific tasks or deliverables that need to be completed and when they are due.
Communication is key throughout the process. Keep all parties informed of progress and any changes or issues that may arise. This can help prevent misunderstandings and keep the project on track.
It is also important to keep detailed records of all correspondence, invoices and receipts related to the contract. This will help with tracking progress, making payments, and resolving any disputes that may arise.
Finally, once all the terms of the contract have been fulfilled, it is important to formally close out the contract. This includes ensuring that all final payments have been made, and any necessary paperwork has been completed.
In summary, having a signed contract is just the beginning of the process. It’s essential to review and understand the terms, set deadlines, communicate with all parties, keep detailed records, and formally close out the contract.
SETTLEMENT STATEMENT
It is important to thoroughly review the settlement statement before closing to ensure that all figures and terms are accurate and agreed upon by all parties. This can prevent delays and disagreements at the closing table. It is recommended to review the statement with your clients in advance to address any issues or concerns before the closing. Depending on the type of transaction, the parties may receive a Closing Disclosure (CD), ALTA Settlement Statement or Master Settlement Statement, or a HUD-1 closing statement.
WHAT ARE THE STEPS TO ENSURE READINESS FOR CLOSING FOR BOTH YOU AND YOUR CLIENTS
To make sure you and your clients are ready for the closing, it is important to take the following steps:
Review the closing documents: Review the closing documents, including the purchase agreement, settlement statement, and any other relevant documents, with your clients. Make sure they understand all the terms and conditions outlined in the documents.
Check for errors: Review the documents for any errors or discrepancies. If any are found, work with the other parties to correct them before the closing.
Review the closing costs: Review the closing costs with your clients, including any lender fees, title fees, and other expenses, to ensure they understand all the costs associated with the closing.
Review the title report: Review the title report with your clients to ensure there are no issues with the title that could delay the closing.
Review the title insurance: Review the title insurance policy with your clients, including the coverage and any exclusions, to ensure they understand the protection provided by the policy.
Review the homeowner’s insurance: Review the homeowner’s insurance policy with your clients, including the coverage and any exclusions, to ensure they understand the protection provided by the policy.
Review the mortgage documents: Review the mortgage documents with your clients, including the loan terms and interest rate, to ensure they understand the terms of the loan.
Prepare for the closing: Review the closing checklist with your clients to ensure they have all the necessary documents and information for the closing.
By taking these steps, you and your clients can ensure that everything is in order and that the closing runs smoothly.