The closing process begins when you sign an Offer to Purchase. This is the agreement between a buyer and a seller which identifies the buyer and seller, establishes the price, the amounts of the non-refundable diligence deposit and escrow deposit. It sets the closing date as well as the period of time the buyer has to inspect the property known as the due diligence period.

Care should be taken to use the Offer to Purchase Form approved by the N.C. Bar Association and the N.C. Board of Realtors. This document is sent to your lender and attorney. The lender proceeds to verify your credit worthiness and order an appraisal.

You are tasked with inspection of your future home for any defects during the due diligence period.

The lender sends a title request to the attorney where the attorney searches the property title to determine any title defects, liens and outstanding mortgages.

The attorney ultimately prepares a closing disclosure statement for buyer and seller which shows exact costs including loan payoffs, lender costs, proration of taxes and seller proceeds. The attorney is the closing agent disbursing the funds, sending payoffs of mortgages and sending executed loan documents to the lender.

The parties will be required to sign a document called FIRPTA confirming they are United States Citizens. Non-citizens are required to send a withholding of 15 percent to the IRS from the closing proceeds paid to them using IRS Form 8288 and 8288-A.

Landon A Dunn, Attorney At Law can help with your residential real estate closing and provide legal advice for your Real Estate needs. Call us or use our contact form.