The Real Estate Closing in Key West

The real estate closing is the final stage in the process of buying a home in Key West. The closing is a meeting at which the real estate buyer and seller, usually accompanied by their respective lawyers and Key West real estate agents, complete the sale. At this meeting, the real estate buyer usually makes all the required payments. The seller produces all documents necessary for the transfer of good--that is, marketable--title and delivers a deed that transfers the title to the buyer.

Before the closing, the parties and their lawyers will review all real estate documents to see that everyone is fulfilling all conditions and promises of the contract. A closing statement or settlement sheet is prepared, fully listing the financial aspects of the closing. The Real Estate Settlement Procedures Act (RESPA) will apply in any transaction in which a buyer is obtaining a federally insured mortgage from a financial institution. This requires use of a settlement sheet developed by the Department of Housing and Urban Development. In other closings in which the Key West Real Estate Buyer is not obtaining a mortgage, another form of settlement sheet is usually prepared. Both: Key West Home Buyers and Real Estate Sellers should expect to sign a lot of papers at the closing. Key West Home Buyers should expect to sign the following:

• A promissory note promising to pay in full the loan and interest.

• The mortgage document which secures the promissory note by giving the lender an interest in the property and the right to take and sell the property--that is, foreclose--if the mortgage payments aren't made.      

• A truth in lending form which requires the lender to tell you in advance the approximate annual percentage rate of the loan over the loan's term.

• A typed loan application form.

• A payment letter telling the buyer the amount of the first payment and when it is due.

• An affidavit that the buyer's various names (if he or she has used more than one) all refer to the same person.

• A survey form stating that the buyer has seen and understands the survey of the property and that it fairly depicts the property.

• A private mortgage insurance application, usually required on loans with a down payment of less than 20 percent.

• A termite inspection or other inspection form, indicating that the buyer has seen a report of any inspections that were made.

• The deed transferring title in the real estate from the seller to the buyer.

• A bill of sale transferring ownership of any personal property that may be included in the sale of the real estate.

• An affidavit of title in which the seller states that he or she has the legal right to sell the real estate and that there are no liens or encumbrances (judgments, mortgages, or taxes owed) on the property.        

• An affidavit as to mechanic's liens and possession indicating that the seller has not had any work done on the property that would give rise to a mechanic's lien and that there are no parties other than the seller entitled to possess the property.

• An occupancy certificate indicating that a new home complies with the local housing code.

Both: Key West Home Buyers and Real Estate Sellers will also sign the following:

• An affidavit specifying the purchase price and indicating the source of the purchase price. (This affidavit assures the lender that the buyer has not received any undisclosed loans from the seller that could negatively affect the buyer's ability to repay the lender's loan.)

• A RESPA form developed by the federal Department of Housing and Urban Development and sometimes a separate closing statement, specifying all costs associated with the transaction.