What happens at the closing table?
At closing, the buyer signs loan documents, you sign documents transferring ownership, and funds are exchanged through the title or escrow company. The settlement agent reviews the closing disclosure or settlement statement, confirms wiring instructions, and ensures all conditions are met before recording the deed. Once everything is signed and recorded, the buyer receives keys […]
What documents do I sign at closing?
As a seller, you typically sign the deed, settlement statement, closing disclosures, affidavits (such as no-lien or occupancy statements), and any payoff or release documents required by your lender and title company. In some states you may also sign local transfer forms or tax declarations. Your closing agent will explain each document briefly before you […]
How do wire transfers work at closing?
At closing, your buyer’s lender and the buyer send funds via bank wire to the title or escrow company, which then disburses money to pay off your loans and send you your net proceeds. You’ll provide your wiring instructions in writing to the closing agent and should verify them by phone to avoid fraud. Most […]
What is a HUD-1 or closing disclosure?
A HUD-1 or Closing Disclosure is the detailed settlement statement that shows every charge, credit, and payout for both buyer and seller at closing. Today, most financed residential deals use the 5-page Closing Disclosure, while cash, HELOC, or certain non-TRID loans still use a HUD-1–style settlement statement.
How do I handle closing delays?
Closing delays can come from financing, appraisal, title, repairs, or scheduling issues, so the first step is to identify the cause and timeline. Work with your agent to negotiate an extension addendum, adjust possession dates if needed, and keep all parties updated in writing so the contract doesn’t accidentally default.
Can a seller back out of a signed contract?
Backing out after signing is only possible in limited situations, such as when a buyer misses deadlines, fails to meet contingencies, or you have a specific cancellation right in the contract. Walking away without a valid contractual reason can expose you to legal claims, specific performance demands, and liability for the buyer’s costs.
What are the consequences of backing out as a seller?
If you back out without legal grounds, the buyer may sue for specific performance (forcing the sale) or for damages like inspection costs, appraisal fees, and lost opportunities. You could also be responsible for your listing broker’s commission under the listing agreement, even if the deal doesn’t close.
How does selling affect my income taxes?
If your gain is fully excluded under capital gains rules, you may not owe federal income tax on the profit from your primary residence. However, you might still need to report the sale on your tax return, and selling rentals or second homes can trigger different capital gains and depreciation recapture rules. State income tax […]
Can I deduct real estate agent commissions on my taxes?
You generally don’t deduct agent commissions as a separate expense on your tax return, but they do reduce your taxable gain. Commissions and many selling costs are added to your “selling expenses,” which lowers the net sales price used to calculate capital gains. This can help reduce or eliminate the amount of profit subject to […]
What happens to my mortgage when I sell my home?
At closing, your mortgage is paid off from the buyer’s funds, and any remaining money after costs becomes your net proceeds. Your lender sends a payoff amount that includes principal, interest, and any fees due through the payoff date. Once paid, the lien is released from the property, and you’re no longer responsible for that […]