Full-Service Real Estate Closing

Whether buying or selling a house, you’ve got quite an ordeal in store. By the time an offer is accepted and the contract agreed upon, you might think that you’re almost done… But in a way, the fun’s just about to start.

You’re entering a crucial phase known as the escrow period, or colloquially as “The Closing”. That’s when the attorneys on either side go into overdrive, hustling to get all your ducks in order. Time is of the essence, so you’ll really want a seasoned legal pro on your side. 

We’ve condensed this complex process into five easy steps, courtesy of Kundel Law Office veteran real estate attorneys.

Step #1 - The Contract Acceptance

When an offer is made, the buyer’s deposit is traditionally submitted along with the contract. The sellers review the offer with their attorneys and must either accept or counter it by a certain date. (Typically within 24 hours, but sometimes the contracts are made valid for extended periods of time.)

If the deadline is allowed to expire, the contract is considered null and void. 

If the offer is countered, the ball is in the other party’s court. A new deadline is set, and they must now decide whether to accept or counter.

And if the offer is accepted, we enter the Closing stage. You’re in the home stretch now!

Step #2 - The Earnest Money Deposit

If the deposit was not made along with the offered contract, there is a deadline for submitting it. (Typically a day or two from contract acceptance.) Once it’s made, the deposit will be held in escrow either by the seller’s attorney or by a third party (such as the real estate broker).

If the deal falls through later on the deposit is lost. Thus, the purpose of this "earnest money" is to suggest a degree of commitment on the buyer’s part.

Step #3 - The Survey Contingency

Contracts are often made contingent on one final survey of the property. The buyer’s attorneys conduct this last-minute inspection, making sure that its condition matches what was outlined in the contract to their satisfaction. 

The deadline for this final survey is usually a week from contract acceptance. If significant discrepancies are noted, the contract might be amended or it might be declared null and void. 

And speaking of contingencies…

Step #4 - The Mortgage Contingency

Contracts usually stipulate a mortgage contingency of some kind as well. This is essentially a date by which the buyers must obtain the full mortgage financing approval from their lender. 

The time by which this must be done varies widely, and sellers are known to show some leniency. But if the conditions are not met by the designated date (or waived by the seller), the deal can fall through.

Step #5 - The Closing Date

Once all is said and done, the buyer, the seller, and the lender sit down together to sign at the dotted line. The HUD statement, the title transfer deed, and various other documents are signed. The keys are handed over, and the process is finalized.

If either side fails to close the deal by the deadline, the deal can still be considered forfeit. In the case of this late-stage forfeiture, various legal options may be at either side’s discretion.

The Attorneys’ Hard Work

Through these five stages of the closing process, your real estate attorney is working overtime to make sure everything is finalized successfully. They must prepare and review all the documents involved (of which there are many!) while staying in touch with all the relevant agencies. If there’s a snag with the HOA disclosure summary, your attorney must know who to call and when! If the municipality title clearance is delayed for unpaid fees, your attorney must be ready to act! Most importantly, it’s their job to make sure you fully comprehend all the conditions stipulated in your contract!

It’s a stressful time for the buyers and sellers alike, but also for their legal representatives. To avoid wasting time and money, rely on professional real estate attorneys with decades of experience in handling these transactions. 



Contact Kundel Law Office today to see why we’re your number one choice when it comes to real estate contracts.