Congratulations! You’re buying or selling a home in Charlotte, and closing day is fast approaching. If this is your first time buying or selling a home, you’re probably wondering “What happens on closing day?”
Your real estate agent is a helpful resource, so don’t hesitate to ask him or her questions about a real estate closing. In the meantime, here are some of the most common questions about closing on a home.
Friendly reminder: If you need a Charlotte real estate attorney, don’t hesitate to call us today!
A Closing Disclosure, sometimes called a settlement statement, summarizes all funds the buyer and seller receive and pay at closing. This includes several expenses associated with a real estate transaction, such as:
If your transaction involves a federally insured loan, the Real Estate Settlement Procedures Act (RESPA) requires that this information be disclosed on a Seller Disclosure or a Buyer Disclosure form for each party.
The buyer and seller will each receive a Closing Disclosure (also called a settlement statement) that shows a settlement of the funds that will be transferred at closing.
A buyer obtaining a mortgage will also sign several loan-related documents, such as a promissory note, deed of trust, tax forms, and other disclosures. If you are a buyer and you have not already received copies of the termite report, survey and repair invoice(s), you should receive and review those at closing.
A seller will sign a deed conveying the property to the buyer. They’ll also sign a Certificate of Title saying they have the right to sell the property. Sellers will also sign a Statement of Closing Costs and a Bill of Sale (for personal property). The list of documents signed by a seller is much shorter than the list of buyer’s documents.
A Certificate of Occupancy is issued by the city or county building inspection office. It certifies that a newly built home or a home with significant renovations has passed a final inspection, met all building permit requirements, and is safe for occupancy.
If you are buying a newly constructed, renovated, or modified home, the seller should provide you with a copy of the Certificate of Occupancy before closing.
Typically, no. Your real estate agent cannot sign closing documents on your behalf unless you have given them written authorization through a limited power of attorney. However, it’s always best to review and sign all documents yourself to ensure you fully understand the terms of the transaction.
“Closing costs” cover various expenses beyond the home’s purchase price, including attorney fees, title search costs, title insurance, and loan origination fees.
The real estate purchase contract specifies how much of these costs the seller agrees to pay. If the actual closing costs end up being less than the agreed amount, the lender may limit the seller’s contribution to only the actual closing costs, meaning you don’t get to keep the difference. However, some lenders allow the buyer to receive the full amount that the seller offered, even if the actual costs are lower.
According to the North Carolina Good Funds Settlement Act, the closing attorney may only disburse funds after closing is completed, the title is updated, and the documents have been recorded. Unfortunately, this process often cannot be completed on the same day, meaning funds are typically disbursed on the next business day after closing.
If you are a seller, we recommend discussing the timing of disbursements with the closing attorney in advance. Many sellers depend on their real estate proceeds to fund other investments or cover expenses, so understanding when funds will be available can help prevent misunderstandings.
Have more questions? Call us for real estate closing services in Charlotte or to schedule a consultation!
The information on this website is for informational purposes only; it is deemed accurate but not guaranteed. It does not constitute professional advice. All information is subject to change at any time without notice. Contact us for complete details.
