When you choose me as your listing agent, I'll map out the closing process for you so that you know what to expect during the final stages of your home sale. As a primer, here are some of the steps involved in closing the transaction:
Title transfer
The final step of a real estate transaction occurs when the property’s title is transferred from you, the seller, to the buyer. A third party escrow officer will help transfer the money and documents (including title and deed) between the buyer and you.
Funds transfer
If you or the buyer cannot attend the closing appointment, you can sign papers beforehand and/or grant power of attorney to a third party. Funds from the sale of your home are released directly to you through wire, automatic deposit or check. The proceeds can also be transferred directly to an escrow account in preparation for your new home purchase.
Follow-up steps
After you sell your home, it’s prudent to organize your closing and settlement documents in a file for safe-keeping. It is also important to keep receipts from any improvement projects you made while you owned the property in case you have to pay capital gains tax. In addition, understand your rights as a home seller, including the tax breaks you receive as a result. You can request the following free publications from the IRS, which are designed to help you during the sale of your home (You may contact them at 800-TAX-FORM)
521 Moving Expenses
523 Selling Your Home
527 Residential Rental Property
541 Partnerships
551 Basis of Assets
555 Community Property
561 Determining the Value of Donated Property
908 Bankruptcy Tax Guide
936 Home Mortgage Interest Deduction
Releasing the property to the new homeowner
Once you’ve signed the closing papers and the deed is recorded with the county, the buyer can take legal ownership of the home. Prior to their taking possession, it’s a good idea to contact all of the utility companies to close any accounts attached to the home under your name.
