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Prepare for settlement
One you have a firm contract on your house, you have relatively little more to do. The bulk of the work between contract signing and closing falls on the buyer, who must arrange for a home inspection, financing, and homeowners and title insurance policies.
As a result of the buyer's contract terms, or the home inspection, there may be things you need to have repaired. Get it done now so that it won't be a problem later.
The hard part now is just waiting for the closing. There are, however, a few things you can do to avoid any last-minute problems at settlement.
- Stay abreast of progress on both sides. If your buyer is having trouble getting a loan on the terms specified in the contract, you should know it. If they are turned down for the loan, it could jeopardize the whole deal or at least delay closing until they arrange for another loan. If you have an agent, they should keep you apprised of the progress.
- A day or so before closing, make sure all the necessary papers and documents have been gathered and are in the hands of the right players. If you are using the services of a real estate agent, this is their job, but it pays to make sure that it's all arranged properly.
- At each step during the sale process, your agent should have kept you informed on how much money you should expect to net from the transaction. You should have received an estimated-net sheet when you signed the listing agreement, and another along with each contract presentation. Prior to settlement, the escrow officer or settlement attorney should provide you with a copy of the latest settlement sheet. If you are handling your own settlement, you can get an estimate at the time you arrange for closing, or "open escrow," whether it is with a title company or an attorney.
- People who should be present at closing need to be kept informed of any change in the date, time or place. It's also wise to remind them a week before closing, and again the day before to ensure they don't forget.
- If anyone else is named on your home deed under which you hold title, they must sign the deed granting title to the new owner. If a co-owner doesn't live nearby, allow time to have the deed signed and returned before settlement.
- You should know when you can expect payment. It's unlikely that you will receive a check at settlement, but make sure you know when and how you will be paid. Most settlement attorneys do not disburse checks until all the necessary documents have been properly recorded, but they can give you some idea of how long that typically takes, and how often they issue checks.
- If you are buying another house with the proceeds from this house, consider having both settlements at the same office, scheduled back-to-back. That way, the timing of the disbursement is not a problem. You sign a paper authorizing the title company or attorney to assign the funds from your sale to the new purchase.
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