What should I expect at my real estate closing?

Closings typically last an hour or less and occur at our office. We also do our best to accommodate requests for out-of-office closings when our schedule allows. All of our closings are conducted by an attorney. Our goal is for you to understand and be comfortable with the documents you’re being asked to sign.

The attorney will provide a brief explanation of each document, and you’ll have the opportunity to ask questions prior to signing. We do our best not to overload you with unnecessary information, but we are always happy to provide more details if needed. If you need further explanation of the terms of your loan, we will be happy to facilitate communication with your loan officer. If you would like to review your documents prior to closing, please contact our office.

After signing the closing documents, you will receive copies of all documents in either paper or electronic form.

Will I receive the keys to my new house, or the proceeds from my sale, at closing?

Buyers typically do not receive keys, and sellers typically do not receive their proceeds from the sale, immediately after signing closing documents.

Why? Due to regulations requiring “good funds” and the increased popularity of “split closings” in this region of the country. Real estate closings are typically not completed (aka “funded”) at the time the documents are signed. The buyer’s signed loan documents may need to be submitted to the lender for final approval, and our office may need to exchange closing documents with the attorney’s office representing the other party. The transaction is not complete until the closing documents are signed by the buyer and seller, all required buyer and lender funds are wired to the attorney, the seller-signed deed is delivered to the closing attorney representing the buyer, and the proceeds from the sale are disbursed to the seller. Though this process may be different from your previous experiences with closings, this is the norm in the Midsouth and across much of the United States.

What are closing costs?

Closing costs include (but are not limited to) appraisal fees, lender fees, title insurance fees, attorney fees, pre-paid interest and document recording fees and recording taxes.  These fees can differ for each customer due to the type of mortgage and type of property. You will receive a good faith estimate of your closing costs in advance of your closing date for your review.

Will my spouse be needed at closing?

All parties that are purchasing or selling need to be present at closing, including a spouse whose name may not be on the title or the loan. A legal and valid form of identification will also be necessary for anyone signing closing documents.

Will I need to be present at closing?

Your closing will likely involve some documents that have to be notarized, and our office will need to have the original notarized documents in our possession in time for closing.  If you or your spouse have plans that prevent you from attending the closing, please let us know in advance and we can arrange to have a mobile notary come to you with the documents.

What should I bring to my closing?

If you are the Seller, you’ll need to bring a valid government-issued photo ID, so that the documents you sign can be properly notarized. You may also need to bring your wiring instructions for your bank account if you wish to receive your sale proceeds by wire transfer.

Buyers and Sellers should also plan on their spouse attending closing unless our office tells you otherwise. Even if your spouse is not on title or your loan, your spouse will likely still need to sign some closing documents.

All persons signing at closing must bring a valid government issued form of identification, preferably your driver’s license. Note: some lenders require two (2) valid forms of identification.

Buyers will also need to bring the remainder of the down payment and closing costs (“cash to close”). You can determine the exact amount you will need for closing by contacting your lender or our office a day or two before your scheduled closing date.

Funds for your closing need to be sent to our firm’s escrow account by wire transfer or funds may be in the form of a cashier’s check made payable to JPS Title Services, LLC. ACH transfers and personal checks for closing are not acceptable because they are not “immediately available” funds. Buyers might also need to present a copy of a valid homeowner’s insurance policy, including flood certification if required.  If a mortgage lender is involved in your transaction, they will require proof of homeowner’s insurance prior to loan approval.

What is title insurance?

Title insurance is an insurance policy purchased at closing, or shortly thereafter, that protects your property by insuring against future claims or losses due to title defects resulting from past events, errors and omissions. A home is the largest purchase most people make in their lifetime, and title insurance is a vital way to protect that investment.

Title insurance is unique, because it provides coverage for claims made in the future, or losses incurred in the future, resulting from title defects caused by something that happened in the past. Title insurance provides important protection against hidden risks, such as “stray” deeds, forgery, incapacity or incompetency of the parties, and other undiscovered errors.

If you obtain a mortgage to purchase your property, your lender will require their own title insurance policy (likely at your expense). We believe our clients should be afforded the same protections as their lender. We strongly recommend title insurance for all real estate purchases.

Why do I need title insurance if you’ve already examined a title search?

Though a title search provides a detailed report of the public records affecting a particular property, there are certain risks that not even a title search can reveal. Title insurance protects you against these “unknown defects”, like forgery, stray deeds, and unknown heirs of a deceased party. The idea that a title policy is unnecessary when a title search has been performed is a common myth.

I’m buying a newly constructed home. Why do I need title insurance for a property that has existed for less than a year?

The home itself may be new, but the land on which it sits has a title history as long as any other property. Remember that someone else owned the property before the builder. Title insurance protects you against unknown defects at any point in the chain of title, including those that may have existed long before you or the builder owned the property.

What are some examples of possible title issues/defects that title insurance covers?

• Unknown or undisclosed heirs

• Forged deeds, mortgages, wills, releases and other documents

• False impersonation of the true landowner

• Deeds by minors

• Documents executed by a revoked or expired Power of Attorney

• False affidavits of death or heirship

• Probate matters

• Fraud

• Deeds and wills by persons of unsound mind

• Conveyances by undisclosed divorced spouses

• Rights of divorced parties

• Deeds by persons falsely representing their marital status

• Adverse possession

• Defective acknowledgements due to improper or expired notarization

• Forfeitures of real property due to criminal acts

• Mistakes and omissions resulting in improper abstracting

What is the closing attorney’s role in a real estate transaction?

The closing attorney’s job as “Settlement Agent” in a transaction is to represent its client’s best interests in fulfilling the terms of the real estate contract. When representing a buyer, the closing attorney is responsible for ensuring that the buyer is vested with clear title to the property at closing. When the buyer is obtaining a mortgage to purchase the property, the closing attorney is also responsible for ensuring that the mortgage documents are properly executed, and that the lender has “first lien position”. When representing a seller, the closing attorney is responsible for ensuring the seller’s compliance with the contract and preparing the documents that transfer title to the buyer. 

Do I need a home inspection to close my transaction?

Though an inspection is not required for closing, we strongly encourage all buyers to hire a licensed home inspector to inspect the property prior to closing. The closing of your purchase typically constitutes acceptance of the condition of the property, so it is always best to inspect the property for defects while you may still have an opportunity to negotiate. Sellers who want to repair any defects that could delay their sale may want to order a home inspection before they put their property on the market.

We will close your clients anywhere at any time that is convenient for them. We cover the Entire State of Tennessee and Mississippi.

If you have any questions that are not answered here, please contact our office by calling 901-723-7100.