Finally, after weeks and weeks of hard work, it’s time for the best part of the real estate transaction: closing day! Without proper planning, it’s easy for closing day to go awry in the world of real estate—especially when it comes to the home’s title. That’s why we’ve come up with this North Carolina real estate closing checklist.
It includes everything you should do as a real estate agent to ensure a stress-free and successful closing day. Have specific questions about working with a title insurance agency prior to closing day? Don’t hesitate to give us a call.
In the meantime, let’s get to it!
Step 1: Verify that the Sales Contract is Correct
This sounds simple enough, but when done incorrectly it can yield potentially catastrophic results! You’ll want to ensure that the sales contract is correct, and that includes:
- Making sure the person selling the property is the “record title holder”
- Double checking that all property is represented in the contract
Oftentimes, commercial properties may actually include more than one piece of land so be sure that both the seller and buyer are on the same page and everything is properly accounted for in the contract.
Step 2: Ensure the Contract Includes a “Due Diligency” Clause
This is a huge part of selling—especially when it comes to commercial properties. If there are any contingencies, make sure that all parties are aware and properly informed about them.
Time and time again, we see even the most carefully planned closings fall apart as a result of contingency deadlines not being met!
Step 3: Keep Track of the Buyer
If the buyer is borrowing from a lender, you’ll want to check in with them to make sure they’re following through on all of their requirements. Lenders typically have a set of requirements for borrowers, and when buyers don’t adhere to them it is impossible to get the transaction approved before closing.
Periodically throughout the real estate transaction, contact the buyer’s representative to check that everything is going smoothly! Otherwise, it will be harder for the lender to get the title insurance underwritten and approved.
Step 4: Stay Ahead of Any Title Issues
If any issues with the property’s title arise during the transaction process, deal with them immediately. Work with the seller, the title agency, and the buyer representative to take care of any issues quickly.
Time is of the essence in any real estate transaction, so don’t get bogged down by procrastinating on important title issues!
Step 5: Keep Your Client Informed
Even as an experienced real estate agent, you know that the closing process can be confusing. That’s why you should do everything in your power to educate your client on the closing process.
When your client knows exactly what to do during the closing, the entire process will go that much smoother!
Step 6: Thoroughly Review Closing Documents with Your Client
And, additionally, make sure that all parties are on the same page about closing! Coordinate all logistics, including closing date and time, and confirm it with the buyer, seller, and their representatives.
Step 7: Work with a Professional Title Insurance Agency
As a real estate agent, you’ll want to work closely with a title insurance agency to make sure the policy is effective and ready on time.
If you have any questions about the role title insurance plays in your real estate transaction, please don’t hesitate to give Tryon Title a call!