From accepted offer to getting the keys—everything you need to know about closing on a home sale, whether you're the buyer or seller.
HouseQuick is NOT a title company, attorney, or licensed real estate professional. This guide is for educational purposes. Closing procedures vary by state and transaction type. Consult with your title company, escrow officer, or real estate attorney for specific guidance.
Closing (also called "settlement" or "escrow") is the final step where ownership officially transfers from seller to buyer. It's the day all the paperwork gets signed, money changes hands, and you hand over the keys.
Legal paperwork transferring ownership
Buyer's payment, your proceeds
Property officially changes hands
A typical closing takes 30-45 days from accepted offer. Here's what happens during that time:
Buyer submits earnest money deposit (typically 1-3% of price). Title company opens escrow and begins title search.
Buyer conducts home inspection. They may request repairs or credits. This is where many deals get renegotiated.
Buyer's lender orders appraisal to verify home value supports loan amount. If it comes in low, price may be renegotiated.
Buyer's lender verifies income, credit, and finalizes loan approval. This is the longest phase—and where most delays occur.
Title company researches property history for liens, judgments, or ownership disputes. Title insurance is issued.
Lender issues final approval. Buyer does final walkthrough to verify property condition. Closing documents prepared.
Sign documents, receive your proceeds, hand over keys. Congratulations—you've sold your home!
Sellers typically pay 8-10% of the sale price in total costs (including agent commissions). Here's the breakdown:
Expect to sign 20-30 pages of documents as a seller. Here are the key ones to understand:
The legal document transferring ownership. Usually a "Warranty Deed" (you guarantee clear title) or "Quitclaim Deed" (no guarantees).
Itemizes all financial details: sale price, closing costs, prorations, and your net proceeds. Review carefully before signing.
Transfers ownership of personal property included in sale (appliances, fixtures, etc. as specified in contract).
You swear under oath there are no undisclosed liens, disputes, or issues with the property.
Authorizes title company to pay off your remaining mortgage balance from sale proceeds.
Confirms your ownership and that you have authority to sell. Required for title insurance.
After weeks of waiting, closing day is surprisingly straightforward. Here's exactly what happens:
Typically scheduled in the morning. You'll sit in a conference room with the escrow officer/closing attorney. The buyer may be there too, or sign separately.
The escrow officer walks through all the numbers: sale price, your payoffs, closing costs, and most importantly—your net proceeds. Ask questions if anything looks wrong.
You'll sign the deed, affidavits, tax documents, and various disclosures. The escrow officer will explain each document as you go.
Once all signatures are collected, the title company pays off your mortgage, pays all closing costs, and wires (or cuts a check for) your remaining proceeds. Wire transfers typically arrive same day; checks are handed to you directly.
Give the buyer the keys, garage door openers, and any access codes. The deed is recorded with the county (usually same day), making the sale official. Congratulations!
Cause: Buyer's loan falls through.
Prevention: Accept offers with pre-approval
letters, not just pre-qualification.
Cause: Home appraises below sale price.
Prevention: Price competitively from the start.
Cause: Unknown liens or ownership disputes.
Prevention: Order a preliminary title report early.
Cause: Can't agree on repairs/credits.
Prevention: Disclose known issues upfront.
Cash sales skip most of the complexity above. No buyer financing to fall through, no appraisal contingencies, no 45-day wait. Just a simple closing, typically in 7-14 days.
Closing process information based on standard real estate practices and NAR data. Processes may vary by state. Analysis by the HouseQuick editorial team.