Typically the closing date is 30 - 45 days after the sales contract has been signed. This is the day the title of the property changes hands and all the outstanding debts on the home are paid. This is the same day you as the "for sale by owner" seller will receive your cash.
Most states require the seller’s attorney to handle the closing, but there are some states requiring the lender’s attorney to do the closing. Still other states demand an Escrow Agent or a Title Company to handle the closing. When an Escrow Agent or a Title Company handle the closing the attorney of the seller and the buyer are not typically in attendance.
The closing attorney will prepare a Settlement Statement, which will show in detail the money received and the money paid out. Make sure to bring your driver’s license or other means of identification along with the deed to the property to be transferred to the buyer. If your state requires it, bring the termite letter.
Often times there will be money remaining in the escrow account. You will receive a check for this money after closing. You will not receive it at the time of closing.
The Settlement Statement is a list of all the money and where it is to be distributed, such as mortgage payoff balance. It will also list the remaining balance, which will go to the seller. This document is reviewed on closing day to inform all the parties involved the final standing of the property.
The right side of the page will list the amount the buyer pays. The left side will list the amount the seller receives. It starts with the price of the property, which the dollar amount the buyer must pay and the seller will receive. The buyer’s closing cost will be on the right. Because this is money paid for services regarding the sale, the seller will not receive any of this money.
The yearly amount of the property taxes will be listed on the right side as money the buyer will have to pay. This money goes to the seller if he has paid for taxes and includes the time the buyer will occupy the home. It will be considered a refund.
The earnest money paid by the buyer will be listed on the right side while the closing cost and the mortgage pay off amount the seller must pay will be listed on the left side.
After all the money has been calculated, the dollar amount on the right side of the page is the money the buyer must pay, which is essentially his down payment. The dollar amount on the left side is the money the seller will get to keep as his profit on the sale of his "for sale by owner" home.
