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The Closing Process - In Layman's Terms

A “Closing” is a meeting - simple enough!  But it’s only simple when you have the right professionals assisting you. 

The Closing, in fact, is the final step in a long process of activities required to accomplish a real estate sale/purchase.  Many people may be involved in the overall process including a buyer, a seller, the buyer’s realtor, the seller’s realtor, the seller’s and/or buyer’s attorney (optional), the lender, and a Closer/Title Company. 

An example of the types of activities, information, and documents that will, or might, be required for the transaction could include the following:

  1. Real Estate Purchase Contract
    a legible copy of a legal document executed by all parties, including modifications and/or addenda to the contract
  2. Deed information
    full legal names and marital status of all buyers and sellers
  3. Evidence of Title
    in Oklahoma, an “Abstract” of the history of the property will be required to be provided; a qualified and bonded abstract company will be requested to update the abstract from records on file with the County’s Land Records department at the County Courthouse, including all owners of record, liens, any clouds on the title, etc.  By Oklahoma Law, the abstract is required to be examined by a licensed attorney if title insurance is to be issued.
  4. Existing Mortgage & Lien Holder Information
    name, phone number and account number of any existing lien holders
  5. New Lender Information
    name of lender, branch location, and name of representative assisting the buyer
  6. Inspection Companies
    name of all companies to be providing inspections and charging fees for services rendered which fees are to be collected at Closing
  7. Home Warranty
    name of the company to be used for this insurance and the fee amount to be collected at Closing
  8. Buyer’s Hazard Insurance
    insurance agent’s name and phone number
  9. *Attorney
    name, address, phone and fax numbers of any attorney(s) engaged by the parties who will be involved in the transaction

 *It is not required that an attorney be involved in your purchase or sale of real property (with the exception of the title examination for title insurance purposes as explained above).  However, attorneys are always welcomed into the transaction activities if your desire is to have yours involved.  If you don’t have a title examining attorney, Oklahoma Title & Escrow Corporation (OTEC) can refer you to the Law Firm from which OTEC routinely engages such services. 

 Before the Closing (meeting) can occur, a flurry of activities must be accomplished with various participants involved at different times, for different reasons and with different responsibilities; an agreed timeline must be followed; and a meeting of all minds must occur.  Sometimes the intricacies of the whole matter can feel overwhelming to the parties involved.  However, our OTEC staff takes pride in maintaining a calm demeanor, a cool head, and in nurturing our clients through each step and task along the way.  We work hard to see that our clients receive superior service backed by the appropriate technological tools to enable effective support.

A typical Closing lasts approximately one hour and is the time at which all required legal and closing documents are officially signed and money changes hands.  One of the most complicated closing documents is the “Settlement Statement” which provides a full accounting of the finances of the transaction.  Again, the staff at OTEC takes a personal interest in assuring the safety and accuracy of your funds handling as well as seeing to the accuracy of document preparation and proper document recordation with County authorities after the Closing has concluded.

This review is intended to provide the reader with a cursory overview of the Closing process and is not intended to convey all the potential needs, requirements or activities that may arise.  Please be assured the expert staff at Oklahoma Title & Escrow Corporation will do everything possible to skillfully accomplish the coordination among all parties, making this highly complex process seem simple.   

We would be honored to assist you or your client in the next real estate transaction you encounter and we look forward to having the opportunity to earn your business and your trust.

 

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