What is a Deed?
A deed is a legal document that records a transfer in ownership of a real estate property. A deed contains a description of the property (including property lines) and denotes the seller/grantor and the buyer/grantee.
What is a Closing or a Settlement?
In a real estate purchase transaction, the closing or settlement is the culmination of the contract. It occurs when the seller signs the deed, the buyer signs the mortgage, and both the buyer and seller have signed a settlement statement and any other necessary documents. It is finalized when the title company is in possession of all of these signed documents and all of the required money.
What Happens During Closing?
Each transaction may be different. Generally speaking, there are three steps that occure:
Meet at the Closing Table
All vested parties (seller, buyer, lender, real estate agent, title agent, etc.) meet at an agreed-upon time, either in person or virtually.
Execute all Documents
All vested parties execute all required paperwork and documents, and deeds and mortgages are exchanged.
Disperse Funds
All funds associated with the transaction are dispersed (down payments, closing costs, title insurance, fees, etc.).
What is a Settlement Statement?
A settlement statement is the official ledger of the transaction, denoting what money is collected and to whom it is given in any given transaction.
