Closing a house is the final step of a home sale. On closing day, the seller and the buyer meet with a closing agent to do the final paperwork, and the buyer receives the title and keys to the home. Closing generally occurs 30-45 days after the seller and the buyer sign the real-estate contract. The buyer’s real-estate agent sets the exact date after the buyer’s loan has been approved.

As a seller, most of your hard work is done by the time you get to the home closing. But you’ll still have a few important things to take care of. And if this is your first time selling a house, you may be confused about the closing process.

Home Closing: Buyer’s Responsibilities

Before closing day, the buyer is responsible for taking care of the following tasks:

• Acquiring a termite certificate (in some areas)
• Getting homeowner’s insurance
• Paying the closing costs and down payment
• Purchasing a homeowner’s warranty
• Securing title services and title insurance
• Setting up and completing a house inspection.

Home Closing: Seller’s Responsibilities

You should be thoroughly vacated from the property you’re selling before the buyer’s final inspection. In addition, the buyer may wish to walk through the house with you so you can point out anything odd about the home. Provide the buyer with the names of anyone who has serviced the house, including:

• Carpenters
• Contractors
• Electricians
• Plumbers
• Roofers.

Be sure to give the buyer copies of the instruction manuals for any appliances in the house, such as the refrigerator, oven or dishwasher.

If, during house negotiations, you agreed to cover all or part of the closing costs, these must be paid before closing day. House closing costs typically run 3 to 5 percent of the cost of the house. They cover payments to the parties involved with closing, including:

• Government offices for recording the deed to the house
• Surveyor costs
• The buyer’s lender for processing the loan
• The title company.

Closing Day: What to Expect

On closing day, the buyer and the seller meet with a closing agent to complete the final paperwork. The closing agent is typically the seller’s attorney or real estate agent, although in some states an escrow agent or title company handles the closing. The agent reviews the sale agreement to determine how much money goes to the seller and how much the buyer owes. The agent also checks to make sure all taxes and title fees are paid. Both you and the buyer must sign a number of documents, each one explained by the agent. Finally, the property is officially transferred from the seller to the buyer.