Closing on a House

BREG - insuranceThe “CLOSING” is the day when the sellers actually turn over ownership of the property to the buyers. The mortgage commitment papers are signed and any last minute details are completed (i.e. keys and garage door openers are tendered, supplemental addenda are signed etc.). Buyers Real Estate Group – Taking Ownership

Buyers should be prepared to come to closing with

  • your driver’s license or a picture ID
  • your proof of homeowner’s hazard insurance
  • your last 10 years of addresses
  • your down payment money in the form of a cashier’s check made out to yourself

Buyers will receive copies of all paperwork. The instructions of deed registration will be conveyed at the end of the closing. One of the final steps is finalizing the deal with a house title.

What is a title? Why do I need a title for my house?

“Title” in real estate language means ownership. When someone sits in title on a piece of property, they are in ownership of it. At the time of closing, you are presented with the Deed to the property. This is a written document that, when properly executed, conveys title to the land. The historical document recording the conveyance of any piece of land throughout its ownership is called an Abstract. The ownership may also be represented by a Torrens certificate, which is a State sponsored method of registering land titles.

If there is more than one home owner, they must choose how they wish to sit in title to the property:

  1. Joint Tenancy-A form of ownership whereby upon the death of one of the owners, ownership is automatically retained by the surviving owner.
  2. Tenants in Common-A form of ownership whereby upon the death of one of the owners, their interest in the land passes to their heirs or assigns, who then become tenants in common with the surviving owner.

The finalization of all of these decisions takes place at the closing, which is when all of the documents are signed and ownership is officially transferred.

Check with your EBA to get a list of Minnesota Lawyers and Title Companies, or, in the contract, you may choose to allow the EBA to select the closing company if you prefer. Your EBA will have a list of trusted professionals from which to choose the right closer and location for you.

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