Congratulations, you are on your way to owning your very own home! Follow these suggestions for your real estate closing (and the advice of your real estate broker) so that escrow and settlement will go as smoothly as possible.
You will be asked for a down payment on the home you are purchasing. You can choose to put down as much or as little as you want (depending on your mortgage), but remember, the more you put down toward the total price of your home, the less time it will take you to pay off and the less your mortgage payments will be every month.
During this period of purchasing your home, you are going to need an escrow or settlement company to act as an independent third party so that you know when and to whom to give your money to get the deed to your new home. The escrow or settlement company will hold your deposit and coordinate much of the activity that goes on during the escrow period. This deposit check may also be held by an attorney or in the broker’s trust account. Make sure that there are sufficient funds in your account to cover this check.
The deposit check will be cashed. Assuming the sale goes through, this money will be applied to the purchase price of the home. If for any reason the sale is not consummated, you may be entitled to receive all of your deposit back, less standard cancellation fees. In certain instances, the seller may be able to retain this money as liquidated damages. Before executing a purchase contract, it would be wise to speak with your counsel regarding whether or not it is in your best interest to have a liquidated damages clause as part of the contract.
The period that you are “in escrow” is often 30 days, but maybe longer or shorter.
During this time, each item specified in the contract must be completed satisfactorily for your real estate closing. By the time you have opened escrow, you have come to an agreement with the seller on the closing date and the contingencies. Each contract is different, but most include the following:
1. Inspection contingency:
This should be completed as soon as possible after the contract to purchase is signed, during your option period — an unsatisfactory inspection result is often the reason buyers cancel during that termination option period.
2. Financing contingency:
Once the contract is signed, you have a period of time to secure funding. If, for any reason, you are unable to secure funding during the period of time granted to you by the contract (and the seller will not provide a written extension of time), you must decide whether you want to remove the contingency and take your chances on getting a loan, or cancel the purchase contract.
3. Marketable title requirement:
With an attorney or title officer, review the title report. The title must be “clear” to ensure that you do not have legal issues regarding your ownership. Check into local and state ordinances regarding property transfer and make sure that you and/or the seller have complied with them.
4. Secure homeowner’s insurance:
This will probably be required before you can proceed with the real estate closing. Depending on your property and coverage needs, obtaining this insurance may take longer than you’d expect. It’s in your best interest to apply for insurance as soon as possible after the contract is signed.
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5. Contact local utility companies:
You will want to schedule to have service turned on when you close escrow.
6. Schedule the final walk-through inspection:
At this time, you should make sure that the property is exactly as the contract says it should be. What you thought to be a “permanently attached” chandelier that would come with the property might have been removed by the seller and replaced with a different fixture entirely.
Protect Yourself from Real Estate Wire Fraud
What is wire fraud — and how are criminals targeting homebuyers like you?
Cybercriminals are increasingly targeting real estate transactions by hacking into email accounts or sending messages that look like they’re from your real estate agent, title company, lender, or another trusted professional. These emails appear genuine but are designed to trick you into wiring money to a fraudulent account. Once the funds are sent, they’re nearly impossible to recover. Don’t let your dream home turn into a nightmare.
Here’s how to protect yourself:
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Never send personal or financial information — such as bank account numbers — by email or any unsecured platform.
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Always verify wiring instructions before sending any money. Even if an email or message looks legitimate, confirm details directly with your agent, title company, or lender by calling a known phone number — not one provided in the suspicious message.
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Be cautious of urgent or last-minute changes to wiring instructions. These are common red flags in fraud attempts.
Important Notice from Our Brokerage:
Uncommon Realty agents and broker will never request that you wire funds or share sensitive information through email, text, or social media. If you receive any such message, contact us immediately using trusted contact information. Your security is our top priority — stay alert and always verify.
You’ve made it! Once the sale has closed, you’re the proud owner of a new home and the real estate closing is complete. Congratulations!
