How does a real estate closing work where you live? Do you have attorneys involved? Do the Buyer and Seller both meet at the closing, hand over keys, talk about the strange characteristics that only this house has that the Buyer needs to know about, and wish each other luck?
It doesn't work that way in Summit County, Colorado, about 90% of the time. I don't remember the last time that I had both Buyer and Seller closing together, in person, looking at each other across the closing table. The majority of our closings are "mail outs" meaning that they are done via Fed-ex with neither party being in town for the closing. In Colorado, title companies handle the closing, and an attorney is seldom involved at that point. If the Buyer or Seller want an attorney to look over contract and closing papers it is best done prior to the actual closing. Because so many of our transactions are second homes, I often never meet the Sellers whose listing I am closing. We handle everything long distance, via email, telephone and fax. We meet the Buyers when we show them the property, but then they go home and we finish everything long distance again.
Here is how your transaction might work.
We put all your documents online on our Mountain Living website, password protected so that only you will see them. You can read, print or download them as you choose. We have your dates on an online calendar so that you can keep track of them too. Nicole, our team's transaction manager, takes care of keeping up with dates and deadlines. She orders the inspections, checks over the title work and keeps in touch with the lender and the title company. Nicole also works with the management company and/or homeowner's association and arranges to change over the utility services.
If your closing will be a mail out, we make sure that we have a draft settlement sheet from the title company at least a week before the closing date. We check it over, verifying that fees and charges are correct, make changes if necessary, and get a final settlement sheet. We email it to you so that you know how much you need to bring to closing (or the amount you will get from the closing, if you are the Seller.) Four to seven days prior to closing, the title company Fed-exes an envelope to you with all your closing documents in it. They do a great job of marking all the documents clearly so that you know what you have to sign and what has to also be notarized. If you have questions, a call to us or to the title company will get you the answer. Once you sign, (and Buyers put their cashier's check in the packet or get the down payment funds wired) everything goes into another pre-addressed and pre-paid Fed-ex envelope and it is dropped into the nearest Fed-ex box. It is that easy! At the same time, the Sellers are also signing their closing packet. With no loan papers to sign, the Seller's packet is much smaller. 
One major difference from some states is that we are a "table funded" state, meaning that funds are due at closing, not 3 days later. No funds? No keys! The closing doesn't happen without all the money changing hands. We had issues with this when California lenders were involved as they weren't used to having to fund until after the closing. As of this year, all lenders doing business in Colorado must be licensed in Colorado, and that really helps us out. Down payment money must be "good funds" meaning a cashier's check or a wire transfer. Personal checks are not accepted unless it is for a very small amount; less than $200 usually.
On closing day, the title company takes the Buyer's documents, matches them up with the Seller's documents, the Brokers sign the settlement sheets, and it is a done deal! Funds get disbursed, keys get mailed, utilities get transferred over and one more lucky home owner has a great mountain getaway.
Many times we have Buyers closing in person, and the Seller closes via Fed-ex. It works the same way but involves a little less paper as the Buyer gets to sign on the same papers the Seller signed. It eliminates some duplication. Once checks are handed over and copies are made, the Buyer is given keys, copies of the documents and gets to go and enjoy their new home. The Seller's proceeds are Fed-exed or wired to them and everyone is happy! We like closing days, but after so much close interaction with the Buyer or Seller, it is almost like we are losing a good friend as we now won't be talking so often!
Comments(33)