After closing a sale, both buyers and sellers enter a new phase in the real estate transaction process. For buyers, this means taking possession of the property they have purchased and officially becoming homeowners. It involves a series of steps to ensure a smooth transition and settlement. On the other hand, for sellers, closing signifies the completion of the sale and the transfer of ownership to the buyer. It involves wrapping up loose ends and finalizing financial and legal matters. Let’s take a closer look at what happens after closing for both buyers and sellers:
1. Taking Possession
This step depends on the mode of payment. If the buyer paid through cash, they typically immediately receive the keys to their new property & can officially move in.
If the deal was closed through bank financing, buyers usually have to wait for the Letter Of Guarantee from the bank before they can move in
2. Finalizing Payments
Buyers need to ensure that all financial obligations are met, such as paying the remaining balance of the purchase price, closing costs, monthly amortizations, and any other agreed-upon expenses.
3. Reviewing Documents/Due Diligence
Buyers perform their due diligence and carefully review all closing documents to ensure accuracy and understand the terms and conditions of the transaction.
4. Home Inspections and Repairs
If there were any contingencies or repair negotiations during the purchase process, buyers may need to coordinate & oversee the completion of repairs or improvements.
5. Updating Utilities and Address Change
Buyers should contact utility providers to transfer services into their name and update their address. These include relevant organizations, including banks, insurance companies, and government agencies.
1. Handing Over the Property
This also depends on the mode of payment agreed upon. If the transaction was performed through cash, sellers must provide access to the property for a final walkthrough & ensure that any agreed-upon repairs or improvements have been completed.
If the transaction was performed through financing, the seller will transfer the title to the buyer’s name upon receipt of the Letter Of Guarantee.
2. Receiving Payment
If the deal was done through cash, sellers receive the proceeds from the sale, minus any outstanding mortgage balances, closing costs, real estate agent commissions, and other agreed-upon fees. They then transfer the title and ownership of the property to the buyer through the execution of necessary legal documents.
If financing, sellers wait for the initial downpayment, after which they transfer the title. Afterwards, they wait for the bank to credit them with the loan proceeds.
3. Canceling Utilities and Address Change
Sellers should cancel utility services in their name and update their address with relevant organizations and institutions.
4. Moving Out
Lastly, sellers need to move out of the property, ensuring it is clean and in the agreed-upon condition during the sale.
Overall, the process after closing a sale involves tying up loose ends, completing financial transactions, and transitioning into the new phase of homeownership or relinquishing ownership for sellers. Both buyers and sellers need to stay organized, communicate effectively, and follow through with their respective responsibilities to ensure a successful and seamless transition.