Sell My House Closing Process and Legal Documents

Question 1

What is 'closing' in a real estate transaction?

Accepted Answer

The final step where ownership legally transfers from seller to buyer and all funds are exchanged

Answer

When the seller accepts an offer

Answer

When the listing agreement expires

Answer

When the home passes its final inspection

Question 2

What is a 'closing disclosure' (CD)?

Accepted Answer

A federally required document detailing all final loan terms, fees, and cash amounts due at closing

Answer

A document the seller fills out listing all known defects

Answer

A report from the title company on property history

Answer

The deed transferring ownership to the buyer

Question 3

What is 'title insurance' and why is it important for home sellers?

Accepted Answer

Insurance that protects against losses from defects in the property's title history, such as liens or ownership disputes

Answer

Insurance the seller buys to cover moving costs

Answer

An insurance policy that covers the home's structure

Answer

Insurance required by the HOA

Question 4

What are 'closing costs' that a seller typically pays?

Accepted Answer

Agent commissions, title fees, transfer taxes, prorated property taxes, and any agreed seller concessions

Answer

Only the real estate commission

Answer

Only the mortgage payoff balance

Answer

A flat government fee of 1% of the sale price

Question 5

What is a 'purchase and sale agreement' (PSA)?

Accepted Answer

The legally binding contract between buyer and seller outlining all terms of the transaction

Answer

The seller's listing agreement with their agent

Answer

The document the lender uses to approve the buyer's mortgage

Answer

The title company's fee schedule

Question 6

What does it mean for a sale to be 'contingent'?

Accepted Answer

The sale is dependent on specific conditions being met, such as financing, inspection, or appraisal

Answer

The home is sold without any conditions

Answer

The property is in pre-foreclosure

Answer

The closing date has passed without completion