D E B I TS A N D C R E D I TS Prior to closing, the attorney will prepare a statement of funds and expenses for each party to the transaction. This uniform document is known in the business as a Settlement Statement and contains a detailed accounting of the entire financial transaction. In Georgia, the closing costs associated with the lender and loan normally fall on the buyer’s side of the transaction unless a prior agreement has been made in the purchase and sale agreement. Seller’s side expenses typically include: commissions and marketing expenses for the property, pro-rations and adjustments, payoff costs for first, second and other mortgages and courier fees. The seller may also be asked to pay for a home warranty if included in the purchase and sale agreement. Typically, the seller’s expenses are paid at closing out of the proceeds received from the buyer with the seller receiving a single check, net of all deductions. In some circumstances when sellers expenses exceed the proceeds from the buyer, the seller will be required to pay additional sums at closing to complete the sale.
W H AT S H O U L D I B R I N G TO C LO S I N G ? At the closing, the seller should be prepared with the following: 1.
All house keys and electronic devices for garage doors, alarm systems, mail boxes, etc.
2. Documentation/receipts required by the purchase and sale agreement for repairs, cleaning, etc. 3. Warranties that might still be in effect. 4. Warranties and receipts on repairs if applicable. 5. Photo identification. 6. Certified check and a personal check book if the seller owes money at closing. 7. Original Power of Attorney, if necessary, drafted by the attorney closing the transaction.
P R O B L E M S AT C LO S I N G Since the process of closing a real estate transaction involves numerous parties, multiple contractual commitments and lots of money, problems are not uncommon. The saying that “nothing is over until it’s over” is very appropriate with regards to a real estate closing. However, careful planning and diligent attention to the contractual details can alleviate many potential problems before they happen. Making sure that agreed upon repairs are completed in advance and accepted by the buyer is one key example of careful planning. Your agent is an excellent resource in identifying and eliminating factors that might interfere with your successful closing. Other factors, beyond the control of the buyer or the seller can also affect a closing. Should the loan be unable to be closed on the proposed date or that the seller fails to satisfy title either party, upon written notice provided before the agreed upon closing date, either party can extend the contract closing date up to seven days. Once this option is used by either party, the right terminates and is no longer able to be exercised.
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