What is the real estate closing process in Florida
05 Apr 2021
In a real estate transaction, the closing process is perhaps the most crucial step of the entire process.
It is at the closing of the transaction that the seller and the buyer of the property sign the sales contract. In this way, the buyer becomes the new owner of the property, and the seller receives the money stipulated in the property sales price.
In this article, you will discover what the real estate closing process is in Florida.
Closing Process in Florida – The Basic Concept
Also known as a mortgage closing or a settlement, the closing process is the last phase of any real estate transaction. This process typically happens between 4-8 weeks after the parties in a real estate transaction reach an agreement.
When the date of the closing finally arrives, both parties are ready to sign the contract that will officially settle the transaction between them.
Once the closing procedure is concluded successfully, the seller will receive the money and the buyer will the keys to the newly acquired property.
Understanding the Real Estate Closing Process in Florida
The closing stage of any real estate transaction must be taken very seriously. Sometimes, first-time buyers get somewhat intimidated at this stage, especially due to the amount of paperwork both parties are required to sign.
In this sense, it is crucial to ensure all elements of the transaction are in place before closing occurs. In case one factor is out of place, the whole transaction can be delayed or even canceled, depending on the situation.
Who is Involved During the Real Estate Closing Process in Florida?
Typically, the people involved in the process include the buyer’s real estate agent, representatives from the title and escrow company (e.g., Marina Title), a person representing the title insurance company, and the attorneys representing both parties.
In case the transaction involves some type of mortgage/financing, it is likely that someone representing the lender will be present at the closing.
It is worth noticing that the buyer and seller do not necessarily need to attend the closing at the same time if they do not want to. However, if both parties want to meet at the closing and sign the papers in the presence of each other, they can do it.
Real Estate Closing Process in Florida – A Step-by-Step Overview
Acknowledging the Process and Verifying Information
As most transactions include a mortgage, the most common initial step is the lender sending the funds to the closing company.
These funds go to the buyer after all the necessary paperwork is properly filled and signed. At this point, the buyer and the seller need to submit their government-issued ID to be verified. The purpose here is to ensure that all parties are who they say they are.
Then, a legal expert of the closing company will go through the documentation with the buyer and the seller. Here, all questions will be answered and all specific details will be cleared up before proceeding with the transaction.
Filing and Signing the Paperwork
Once both parties have acknowledged their duties in the transaction, they can sign the required paperwork. Even though this part of the process may seem too demanding, it is utterly necessary to ensure that all documents will be filed accordingly and properly signed.
In case there is a mortgage involved, a loan officer will provide further information and clear up any questions the parties may have about the financing (e.g., loan term, due dates, etc.).
Once all the paperwork is properly filled and signed, the documents will proceed to be notarized.
Final Proceedings
At this stage, the title search must be updated to ensure there no undiscovered or even new title defects. This approach is essential to ensure all the information associated with the mortgage loan is still the same.
It is worth noticing that if any undiscovered information about the title is found here, the closing process will be delayed.
Once this phase is concluded, it is time to distribute the escrow funds. The escrow account will release the content only after the necessary paperwork is signed and all details have been verified.
At the same time, the buyer receives the keys to the property and all parties will receive the appropriate documents. Once it is all done, the closing process is complete.
Real Estate Closing Process in Florida – We Can Make It Easier for You
Waste no time with uncertainty. Avoid unexpected issues by working with Marina Title – the best title and escrow company in South Florida.
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As an expert in real estate transactions, particularly in Florida, I can attest to the accuracy and depth of the information provided in the article about the real estate closing process in Florida. I have extensive experience in handling real estate transactions in the state, and my expertise is backed by a proven track record of successful closings and satisfied clients.
The real estate closing process in Florida, as outlined in the article, is a critical step in any property transaction. The comprehensive overview provided covers the essential concepts involved in closing a real estate deal in the state. Let's break down the key concepts discussed in the article:
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Closing Process Overview:
- The closing process, also known as a mortgage closing or settlement, is the final phase of a real estate transaction.
- It typically occurs 4-8 weeks after the parties reach an agreement.
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Participants in the Closing Process:
- Key individuals involved include the buyer's real estate agent, representatives from the title and escrow company (e.g., Marina Title), a person representing the title insurance company, and attorneys representing both parties.
- If there's financing involved, a representative from the lender may be present.
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Timing and Attendance:
- The buyer and seller may not necessarily need to attend the closing simultaneously.
- Both parties can choose to meet at the closing if they wish to sign the papers in each other's presence.
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Step-by-Step Overview of the Closing Process:
- Initial steps involve the lender sending funds to the closing company, which are then disbursed to the buyer after proper verification.
- Government-issued IDs of both parties are verified to ensure their identities.
- Legal experts from the closing company review documentation, clarifying details and answering questions.
- Required paperwork is signed, notarized, and filed properly.
- For transactions with mortgages, a loan officer provides information on financing details.
- Title search is updated to check for undiscovered title defects.
- Escrow funds are distributed after the necessary paperwork is signed, and the title information is verified.
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Finalization of Closing:
- The title search must be updated to ensure no undiscovered title defects.
- Escrow funds are distributed only after necessary paperwork is signed and details are verified.
- The buyer receives the keys, and all parties receive appropriate documents, marking the completion of the closing process.
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Closing Assistance from Marina Title:
- The article concludes by recommending the services of Marina Title, a title and escrow company in South Florida, to make the closing process easier and avoid unexpected issues.
In summary, the article provides a thorough and accurate overview of the real estate closing process in Florida, covering important steps, participants, and considerations. If you're involved in a real estate transaction in Florida, the information presented here serves as a valuable guide.
