What to Expect at a Real Estate Closing

Buying or selling a home is one of the biggest financial transactions most people will make in
their lifetime. The process can feel long and complicated, and for good reason. There are
contracts to review, inspections to complete, financing to finalize, and countless deadlines to
meet along the way. But the most important part of the transaction happens at the very end.
For many buyers and sellers, the closing is the moment where excitement meets stress. All the
paperwork and legal requirements come together in one final appointment, and it’s where
ownership of the property officially transfers. Understanding what happens at a real estate
closing can make the process smoother, and having an experienced real estate attorney by your
side can ensure your rights are protected every step of the way.
Here’s what you can expect at a closing from a legal point of view.

What Exactly Is a Closing?

The “closing” is the final stage of a real estate transaction. It’s the meeting where the buyer
signs the documents to take legal ownership of the property, and the seller signs the documents
to transfer it. Money changes hands, the deed is recorded, and the keys are handed over.
From a legal perspective, the closing is when:

• Title is transferred from seller to buyer.
• Closing documents are signed and notarized.
• Funds (from the buyer, lender, and seller) are properly distributed
• The transaction is recorded with the county or local registry.
  Since this step finalizes the deal, it’s critical that every legal document be correct before
  anything is signed.

Who Attends the Closing?

A typical closing may include:

• The buyer and seller (or their representatives).
• The real estate agents involved in the transaction.
• The closing agent or title company representative (who facilitates the process).
• The lender’s representative (if there is a mortgage).
• And ideally, your real estate attorney (to review all documents, explain your rights and
  obligations, and make sure there are no last-minute legal issues).

Key Documents You’ll Review and Sign

A closing document involves signing a stack of documents, many of which carry long-term legal
implications. Below are the most important ones your attorney will review.

The Deed
This transfers ownership of the property from seller to buyer. It must be carefully reviewed to ensure the
legal description of the property is accurate and that no unwanted restrictions are included.

Closing Disclosure (CD)
This outlines the buyer’s loan terms, interest rate, closing costs, and final amount due. Your attorney can
verify that these numbers match your purchase agreement and lender documents.

Promissory Note and Mortgage
If financing is involved, these are the buyer’s legal agreements to repay the loan. Your attorney will make
sure there are no unusual provisions.

Title Documents
These prove the seller has a clear right to transfer ownership and that there are no disclosed liens or
claims on the property.

Settlement Statements
This document breaks down how funds are distributed, including payments to the seller, real estate
agents, and service providers.

Your attorney’s role is to ensure that everything you sign is legally sound and in your best interest.

Common Legal Issues That Can Arise

Closings don’t always go smoothly. Legal problems that can delay or even cancel a closing
include:

Title defects: undisclosed liens, easements, or ownership disputes.

Errors in documents: misspelled names, incorrect legal descriptions, or wrong purchase price
figures.

Unresolved inspection or repair issues: If repairs weren’t completed per the contract, this can
lead to last-minute negotiations.

Financing issues: If the buyer’s loan isn’t finalized or the lender changes terms at the last
minute.

Having a lawyer at closing means you have someone who can quickly identify and resolve
these problems or advise you if postponing the closing is the safest option.

Why Legal Representation Matters

It can be tempting to rely on your real estate agent or title company to handle everything. While
those professionals play important roles, they cannot give you legal advice. Your attorney, on
the other hand, represents your best interest exclusively.
A real estate attorney can:

• Review all documents in advance so there are no surprises at the table.
• Catch errors that could delay closing or create problems after you move in.
• Explain legal terms and obligations in plain language.
• Negotiate last-minute disputes over repairs, credits, or funds.
• Ensure your property rights are fully protected before you sign.
  This peace of mind is why so many buyers and sellers choose to have legal representation,
  especially when dealing with high-value transactions.

Final Steps After the Closing

Once all documents are signed and funds are transferred, your attorney or closing agent will

• Record the deed with the county so your ownership is official.
• Distribute funds according to the settlement statement.
• Provide you with copies of all signed documents for your records.
  At that point, the deal is officially complete, and you can celebrate your new home or the
  successful sale of your property.

Conclusion

Real estate closings are exciting, but they also carry significant legal weight. Understanding
what to expect helps you feel confident and prepared. Having a skilled real estate attorney by
your side ensures that everything is handled correctly, your rights are protected, and any
last-minute issues are resolved quickly.
If you’re preparing to buy or sell a property, Leydorf Law is here to guide you through every step
of the closing process. We’ll review your documents, protect your interests, and make sure your
transaction is as smooth as possible so you can focus on what comes next.

Contact us today at (517) 550-5505 to schedule a consultation and take the stress out of your
next real estate closing.