• Home
    • Blog
    • Home Buyers & Sellers: What to expect at settlement (“closing”)

    Home Buyers & Sellers: What to expect at settlement (“closing”)

    If you are buying or selling a home, it’s a good idea to understand what will happen on closing day. Here in the state of Utah, we use Title Companies. What most people refer to as “closing” is actually called “settlement” for us. Closing occurs after the buyers loan proceed is transferred to title, ownership conveys from the seller to buyer (or vice versa) and title is recorded with the county. You should come to settlement with a personal ID, plan about an hour of time. and be ready to sign your name a lot!!!!

     

    Transcription:

    David
    Today I want to take you through the closing process. We call that settlement. In Utah. The day of signing your documents whether you're a buyer or a seller. I want to. I wanted you to see what it was like. To come to a title company. Where we do that. Today I’m at Access Title. I'm going to go on here we're going to meet Dan Hall, he’s the president of Access Title. He's going to kind of Show us what he does and what to expect when You come to closing. Hey Dan how are you doing. Good to see you. See you as well. Thanks for meeting with me. I really appreciate it. So I'm here because all my clients want to know what to expect when they come to title. So whether you're a buyer or a seller could you just Walk us through your office and tell us what to expect.
    
    Dan
    So when you come for your closing you're going to come in through the doors here obviously. Our. Awesome staff over here is going to welcome you to the office and. Ask you if you'd like to have a drink and have you say we're not quite ready for your closing.
    
    David
    Are you talking about alcohol not alcohol?
    
    Dan
    OK. So like soda water. Yeah yeah. Caffeinated, no caffeinated they are going to sign a lot of documents. OK I want to make sure you have your energy up and we have sugar in there as well. So we're ready to go right with the closing which we typically are going to get here so we can or will have. Directly come into our cozy room if not we'll have to sit out here for a couple minutes while we're getting documents ready. And then once the documents are ready we welcome you in here from our closing room. You come in here have a seat over here. Have yourself a cold drink.
    
    David
    Can I Sit down?
    
    Dan
    Yes absolutely. Sit down. David usually sits here and we'll have you sit right over here across from me. That way you'll be able to see the documents very easily and I will get you some pens over here and then we'll get your documents out. Now typically on a selling side. The package is quite small. So this is not the size of the package. That will be signed on seller side. This is the type size of a package that we sign on the buyer side. Can you see a big difference here. Seller side you get money. buyer side you're paying money. Some more to Sign. Most of these documents are provided by the lender.
    
    David
    So have you ever counted. How many signatures they have to do?
    
    Dan
    Most lenders to about 45 to 50 signatures.
    
    David
    Is that for On a conventional loan?
    
    Dan
    On a VA loan that is going to be probably eight more documents and that will be around 58 signatures. Looks like it's on the sell side. Three percent of the yes sell side you're going to be eight signatures. That's done. So good things to have with you when you come to closing is two forms of ID. Most lenders want to have two forms of ID some lenders will only. Need one. Sort of I.D. now I.D. needs to be a driver's license. Passport. Those two items are. We can notarize or something. We cannot notarize off of is a driving privilege card. That Is provided by the state of Utah. We cannot notarize of that. So we do need to either have there a passport. Or a driver's license now it doesn't have to be a U.S. passport it can be country's. Passport. We can. Authorize. Legitimate passport.
    
    David
    All right. So they got documentation. Ready to sign. So. What about time? how long does it take to do all of this?
    
    Dan
    Good question. it’s on a selling side it’s going to take around 15 to 20 minutes depending upon how many questions you have about 20 minutes on purchase side it’s going to take anywhere from a half hour to 45 minutes. To sign the documents can take up to an hour. Depends How many questions you have. We're certainly. Here to answer any and every question that you have.
    
    David
    So what documents do you provide them before they come here?
    
    Dan
    Before they come here they should receive closing disclosure. Now a closing disclosure is going to have all of their rough notes. Their numbers that were provided by the lender like the buyer expenses. expenses they’re going to know exactly how much money they're going to have to bring to the table or how much money they're going to be getting at the table. We don't want to have surprises at the table.
    
    David
    So should a buyer have already. how should they bring the money?
    
    Dan
    So that's also very very good question. Depends on how much money they're going to have to bring. If there's going to be bringing less than ten thousand dollars. We can do it In a cashiers Check. If It's more than ten thousand dollars Utah Good funds law. States that it has to the wired by the bank. So if it's more than 10000. We will provide to you. Wire instructions.
    
    David
    So no suitcases full of money.
    
    Dan
    If it's less than ten thousand dollars yes it's more than 10000 dollars. No.
    
    David
    Has that ever happened?
    
    Dan
    It has happened once. So one time I was doing the closing with the gentleman that was paying cash. I was to meet him at Wells Fargo Bank. I was there. Right on time and I was sitting there waiting for him. I've been waiting for 20 minutes I finally called him after 20 minutes. And there was a gentleman at the front desk. That was turning in a suitcase full of 200000 dollars worth of cash to the teller and they were running it through the machine. Wow. While I was there waiting for him. so it does happen but it has to go through a bank.
    
    David
    So wire transfer trackable.
    
    Dan
    Yes wire transfers can be trackable. That's very important on the purchase side because your lender is going to work previously to come into closing. They're going to verify where all your funds are so they're going to make sure that the funds are being wired to us are coming from the bank account that they've already verified. That you have form funds from. On the seller's side. It's good to know where you want your funds to be sent to. Typically we like to wire those funds to you because those funds are immediately available. If I give you a check. Your bank's going to put a 4 to 5 day hold on it until it. Actually clears the bank But If we the funds to you to your funds is really available to use.
    
    David
    Now there's some confusion terminology. The real estate contract calls this settlement. Yeah. There's something else referred to as closing. Are you want to tell us what the difference is.
    
    Dan
    Yes so closing. Here the table is closing. Settlement is when we've actually funded it recorded. And so settlements. We’re done. At that point. And so. The old real estate purchase contract was. Was more vague about that like the. Real estate first contract because it basically rules it all into one closing its settlement. We don't. Get those terms mixed up as much anymore with the new real estate purchase contract. That. Utah State. Realtors Association came up with. UAR did. It commingles those those were settlement closing is. The same date. And so but in the old contract there was a lot of confusion about which is which.
    
    David
    Right within our contract we say you can have keys or you get possession closing closing in 24 hours for you. Yes. Yes.
    
    Dan
    And I'm the new what it says that once once it has. Closed and funded. Then you're able to see. KEYES And funding means that we've received all the funds. We have recorded the warranty deed and. The new owners. Put on title Property that's where keys typically exchange because they're now the owners of the property. OK.
    
    David
    So once they've signed here you. Is there anything they get to take home?
    
    Dan
    Yes. So we will provide for them. We're going to ask them at closing whether they want to have. A. Paper copy. Or if they'd like to send it to them electronically.
    
    David
    What if they take a paper copy and they lose it?
    
    Dan
    We're always have so we use a really cool software here and. When you do separate file here it's getting sent out to you the opportunity to be sign up with an account. Through our software and. It's retrievable 24/7. So you always have a copy. And I will always have a copy of it. It's a cloud based system so we backed up. By multiple points. And.
    
    David
    What paper should they keep taxes?
    
    Dan
    For taxes on the sell side they should keep the copy of the closing disclosure. The first documents provided to them. Whether they're purchasing or selling because on the purchasing side there are some items on there. That. Is a tax deduction. I’m not an Account. Can't get tax legal advice. But there are some items on there that they're going to want to show their accounts let them know we purchased a property this year. And there are some items on there that they will be able to deduct from their taxes. On top of their interest. That they're. Going to receive from the lender. On the sell side. They're also going to want to have a copy of their closing disclosure. Important fact is if. They're selling a property. And it's been their principal residence for two the past five years a couple. Can. Receive up to 500000 dollars with out Paying any taxes. Individual can receive up to 250000. of gain Without paying any Taxes. So if they're a married couple or a couple and have. 500000 dollars or less of gain they're not going to have to report that to the IRS. There'll be no 10 99 sent of them. If it's more than 500000 ten ninety nine will be. Sent to them. Which will review board IRS and will. A. Report that. Their. Can. Get.
    
    David
    Well. So we're here. That would pretty much conclude. They have decided to give them their digital copy congratulate them on their new purchase or to sell the property and then roughly the next day. You let them know that it's. Funded. Everything that.
    
    Dan
    We actually like to have. We will let you give that good news out to tell me tell it. yeah. You're the ones doing all the work.
    
    David
    That point on we’ll. Organize. Getting. Access to the property for them. So. Well thanks for watching. This has been a Very helpful. Interview here with Dan Hall at Access Title. If I you have any questions go ahead and them as comments. please like this video and subscribe so that we can give you better content in the future help you. Thanks.

    Trackback from your site.

    Leave a Reply