Real Estate Settlement Procedures

How Do Real Estate Settlement Procedures Work?

Let's now discuss the settlement procedures or the closing of a real estate transaction. First off, who needs to be at closing? Typically, we need the seller there, and we also need the buyer to show up and we need a closing agent. A closing agent can be one of a lot of different people or organizations. The closing agent could be a brokerage company, or an attorney, or it could be a title company. These are various entities that can serve as a closing agent. At closing, we will have the final closing statement, which lists all of the final closing costs for both the seller and the buyer. Remember on closing statements, if we debit a person on the closing statement, that means a person owes the money. Likewise, if we credit a person on the closing statement, that means the person is receiving the money.