What is a Closing

Atlanta Real Estate Closing

A “closing” is the meeting attended by the Buyer, Seller, and their agents (optional), and representative from the lending institution and attorney. This is where the actual transfer of title to the property occurs.  The purchase agreement or contract you have signed describes the property, states the purchase price and terms, sets forth the method of payment, and usually names the date and place where the closing or actual transfer of the property title and keys will occur.  This meeting is also referred to as the settlement.

The attorney transferring ownership of the property to you will prepare a new deed.  Your lender will require you to sign a document, usually a promissory note, as evidence that you are personally responsible for repaying the loan.  You will also sign a mortgage or deed of trust on the property as security to the lender for the loan.  The mortgage or deed of trust gives the lender the right to sell the property if you fail to make the payments.  Before you exchange these papers, the property may be surveyed, appraised, or inspected, and the ownership of title will be checked in county and court records.