Hilton Head Island Closing Introduction
Closing is the term used to describe the final process of transferring property from seller to buyer, also called 'in escrow.’ This refers to the escrow company that handles the general accounting at the end of the sale to make sure it is settled equitably including settlement of taxes, utilities, repairs, etc. Escrow is a neutral third party, a stake holder, who is set up to hold documents and approvals as they are gathered and to disperse the mortgage, once it funds. In some areas of the country an attorney may act as the escrow holder although in most areas a corporation acts as escrow.
You will have a purchase contract, usually completed with your agent, that states all the terms of the deal such as the address, price, terms, contingencies, closing date, what fixtures stay, title transfer, and more. This is a legally binding document and so should be prepared with care.
The closing date is a mutually-agreed-upon day generally between two weeks and 90 days after your offer is accepted when ownership officially changes hands. On closing day the mortgage begins and the down payment and closing costs are paid, final documents are signed, and the deed goes to the courthouse in the buyer's name. 'Closing' is when the buyer officially owns the house; 'possession' is when the buyer moves in.