Preparation for Closing. Once the purchase agreement is signed, the parties must complete certain tasks to prepare for closing. Unless the buyer is paying with cash or will sign a land contract, the buyer must arrange for financing. If a mortgage is being applied for, the mortgage company or bank will order a credit investigation and the property will be appraised. Whatever the terms of payment, a title insurance policy will have to be ordered. Routinely, the seller will purchase this. This will protect both parties, since the title insurance company insures that the seller has valid title to convey. Information concerning taxes, special assessments, liens, land contracts or mortgages must also be obtained prior to closing.
Closing. A closing date is usually scheduled after the title insurance company has issued the commitment to insure the title of the buyer and the mortgage company or bank has approved the financing arrangements. Usually the broker or the title insurance company will prepare a closing package containing all the documents except the mortgage documents. Mortgage documents are prepared by the mortgage company or the bank. At the closing, the documents are signed and the monies are disbursed.
After the Closing. After the closing, the signed documents are recorded with the Register of Deeds to give legal notice of the change of title.