Step five: Closing the Deal

Closing Process Overview

Scheduling the Closings

• During the closing, all documents will be signed and funds transferred to the appropriate parties. Title to the property will transfer from seller to buyer by deed and the seller will receive any proceeds shown on the closing statement.
• If a lender is not involved in the transaction, either party may call Sun Title to request a closing. Sun Title will confirm all the requirements on our title commitment have been satisfied and all parties are ready to close. Once Sun Title receive confirmation, Sun Title will schedule the closing.
• If a lender is involved, the lender will schedule the closing date, time and location. Once Sun Title receive the closing date and time from the lender, Sun Title will contact the buyer and seller to confirm that the closing date, time and location works for them. A list of Sun Title closing locations including contact information for each office may be found at: https://suntitle.com/locations.
• The lender or real estate agent will arrange the closing on your behalf. That said, if you have any questions regarding a closing, call us at 616-458-9100 and we will be there to help you. Please send us a request at least three (3) days in advance of the desired closing date. Sun Title will do our best to accommodate the desired closing date and time requested.

Buyers Guideline to Reviewing the Closing Documents

• Buyer will be signing many, if not all, of the following documents at the closing. It is important that these are reviewed in advance so that any questions can be answered ahead of time.
  
  • Settlement Statement – this will include all of the numbers associated with the transaction and identify the amount of money the buyer will need to bring to the closing.
  • Closing Agreement – this is a document between buyer and Sun Title that includes several provisions that allow us to insure the transaction.
  • Property Transfer Affidavit – this form is required by the State of Michigan to report the sale price of all properties upon transfer and change the address for future tax bills.
  • Principal Residence Exemption Affidavit – this form is required to apply buyer’s homestead rights to the property. When applied, it will reduce the property tax amount by removing the millage associated with the applicable school operating fund.
  • Water/Sewer Disclosure – this is a document acknowledging that Sun Title is not holding any amounts from buyer or seller to pay for the final water or sewer bill after closing.
  • Mortgage Loan Documents – if the Buyer is obtaining a loan, the lender will have its own documents that the Buyer will sign. Prior to the closing, Buyer will receive a Closing Disclosure from the lender which will summarize the key provision of the loan program as well as a snapshot of all the transaction numbers.

Preparing For Closing

Sellers Guideline to Reviewing the Closing Documents

• Seller will be signing many if not all of the following documents at the closing. It is important that these are reviewed in advance so that any questions can be answered ahead of time.
  
  • Settlement Statement – this will include all the numbers associated with the transaction and identify the amount of money the seller will receive at closing or will need to bring to closing.
  • Deed – seller will sign this document that transfers the property from seller to buyer.
  • Bill of Sale – seller will sign this document which transfers all personal property identified in the purchase agreement from seller to buyer.
  • Closing Agreement – this is a document between seller and Sun Title that includes several provisions that allow us to insure transaction.
  • Request to Rescind Principal Residence – this form is required to remove the seller’s homestead exemption from the property so that it may be applied to a different property.
  • IRS Form 1099-S – This is a federally mandated form that reports the sale price to the IRS.
  • Water/Sewer Disclosure – this is a document acknowledging that Sun Title is not holding any amounts from buyer or seller to pay for the final water or sewer bill after closing.
  • Current Mortgage Close-Out Letter – if the seller has a home equity mortgage on the property at the time of closing, this document will allow us to instruct the lender to close the account associated with the mortgage at the time it is paid in full. This takes place after the closing.

What the Buyer Should Know Before Closing

• Buyer should review the Closing Disclosure and Closing Statement in advance of the closing and raise any questions or concerns with the lender and/or Sun Title.
• Buyer should know the exact amount of money they are required to bring to the closing in advance. If buyer is required to bring funds to the closing, the check must be made payable to “Sun Title” and any amount above $1,000 must be paid by certified check. Any amount over $300,000 must be sent via wire transfer.
• Sun Title will utilize CertifID (www.certifid.com) to securely send the wiring instructions to the buyer so they are not tricked into sending funds to a fraudulent account. The buyer cannot trust any wiring instructions that are not received from CertifID.
• The seller’s net closing proceeds may be sent via check or wire transfer after closing. Sun Title will utilize CertifID to verify the identity of the seller and confirm bank account details so that funds are transferred to the correct account.
• Buyer should confirm that the lender is able to fund the loan on the closing date so seller will receive their proceeds at that time.
• If the lender is not able to fund on the closing date, determine whether seller will still allow buyer to move in as they wait for their funds – this typically comes up at a closing near the end of the day where funding will not take place until the next business day.
• Confirm who is required to sign. If the property is purchased jointly (e.g., husband and wife), both need to sign as buyers. If only one spouse is on the loan, the other spouse may need to sign documents. Once confirmed, bring a current photo ID of all signers and any other documents that are requested by Sun Title or the lender.

What the Seller Should Know Before Closing

• Seller should confirm all title requirements have been cleared.
• Review the Settlement Statement to make sure all the numbers are correct.
• If seller is receiving funds at the closing, seller should confirm when the funds will be ready. In most cases, a seller will leave the closing with a check. In some cases, this check may be delayed due to the funding procedures of the buyer’s lender. If there is any question, please call Sun Title to confirm before closing.
• If the seller is receiving net closing proceeds via wire transfer after closing, Sun Title will utilize CertifID (www.certifid.com) to verify the identity of the seller and confirm bank account details so that funds are transferred to the correct account.
• Seller should confirm the date and time of possession. If buyer’s lender is unable to issue a check at closing, seller must decide whether to give full possession to buyer before receiving the funds or extend the possession date until the funds are received.
• Confirm who is required to sign. If the property is owned by an entity (e.g., an LLC, corporation, trust etc.), additional documentation will be required to prove that the person signing on behalf of the entity has the authority to do so. If the property is owned jointly (e.g., husband and wife), both need to sign as sellers. Once confirmed, bring a current photo ID of all signers and any other documents that are requested by Sun Title.

Let’s Make it a Great Closing Experience!

Smooth transactions that end with a great closing experience don’t happen by accident. It takes the

commitment and dedication of all parties in the transaction to stay engaged and responsive. Here’s a quick

list of factors that make up great closings:

1. An understanding of the Purchase Agreement along with timing of possession.
2. The ability to review all documents prior to closing with enough time to ask questions and make changes.
3.  Knowing the closing date, time and location in advance.
4. Receiving advance notice of any funds and documents needed to bring to closing.
5. The closing starts on time with all required parties present.
6. Understanding the documents being signed.
7. Seller leaves the closing with funds (if applicable) and buyer leaves with keys to the new house.

Ready to Feel More Confident About Closing?

Download the full Sun Title Homeownership Guide for even more expert tips, checklists, and peace-of-mind advice for buyers and sellers.

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