The Closing Process.

During the negotiation stage of the transaction, a mutually agreed-upon date for closing is determined. "Closing" is when you and the buyer sign all the paperwork and pay your share of the settlement fees, and then in a day or two, the documents are recorded. Settlement obligations vary widely due to specific contract language, local laws and customs. Prior to closing, the closing agent (usually an escrow or title company or attorney) will complete a detailed settlement statement for both buyer and seller. As your Realtor®, I help you understand which of the following typical settlement fees apply to you.

The seller receives:

• Utility deposits held by gas, electric, cable, telephone and other companies
• Prorated portion of pre-paid property taxes
• Prorated mortgage interest from payments made during the current month
• Fuel rebate for oil or propane remaining in storage tank
• Net proceeds after seller's share of expenses are paid

The seller pays:

• Brokerage commission (the sum or percentage of the sale price, previously agreed upon by the seller and real estate agent)
• One-half of escrow or legal fees paid to the attorney or escrow company for preparing the closing
• Document preparation fees
• Recording and notary fees
• Title search and title insurance (paid by either the seller or the buyer)
• Local transfer taxes, if any
• State taxes, if any (1.78% of the selling price in Washington State)
• Repairs or inspections you have agreed to pay for

An earnest money deposit from the buyer displays a sincere intention to you of his or her desire to purchase your property while the loan is being processed by the lender. Once the loan has been approved and the down payment is being made, this earnest money deposit is credited towards the purchase price of the home.

Your purchase and sales agreement will be reviewed by the closing agent; at the same time, a title search is conducted to determine the accuracy of the title, whether or not there are any liens against your home, and if the title is sound and insurable.

The closing documents are prepared and the closing agent oversees the signing between you and the buyer. When the loan has been approved and financing is verified, the signed closing documents are handed over to the lender.

The lender accounts for all money, and forwards funds to the closing agent. The transaction is closed and recorded in the appropriate public records, the title changes hands and funds are dispersed.

Congratulations, you've just sold your home!

F.Y.I. Helpful Resource! Escrow Partners, Inc. in Kirkland (425) 889-9922, and Bellevue (425) 455-3400, and Renton (425) 687-9400. For more information about escrow, what it is, and frequently asked questions, visit their website at www.escrowpartners.com.