Preparing for Closing: A Complete Checklist

Initial Contract Submission and Communication

The period immediately following contract acceptance represents one of the busiest phases in any real estate transaction. Agents have to juggle multiple priorities and work to ensure that all parties understand their responsibilities and timelines. The actions taken during these first few days can make a big difference in whether the closing proceeds smoothly or encounters preventable delays.

Immediate Communication Requirements

Initial communication with the title company is a foundation for everything that follows. If your transaction includes special circumstances or red flags, such as estate sales, divorced sellers, or bank-owned properties, always communicate these circumstances to your title company. These transactions require additional documentation or processing.

You should also let your title company know if your clients will require a mail-away closing or a Power of Attorney. In both cases, advanced preparation is required to minimize the risk of delay. Everyone who is on the title should plan to be present at closing; however, if a party is unavailable, please alert your title company immediately.

Submit Documentation

When you open a file, you can streamline the closing process by proactively submitting complete documentation and client information. Your title company needs the fully executed contract with all addenda to understand the transaction details completely. You should also include agent and client contact information along with all commission details. At South Oak, all clients receive a detailed questionnaire about factors that can impact closing, so please encourage your clients to complete and return this form right away.

When unique situations exist, such as estate ownership, go ahead and submit documents such as a death certificate or the will when you submit your contract. This will help the title company know what additional documents or actions may be required from your client prior to closing.

Set Client Expectations

Many buyers and sellers underestimate the complexity of the title and closing process, so it’s important to set realistic expectations with your clients. This includes:

• Explaining the typical timeline
• Communication about client responsibilities
• Identifying potential complications with the transaction
• Preparing clients for the financial aspects of the transaction
• Sharing policies and procedures for communication

Clients experience more confidence and greater satisfaction when they understand the title and closing process and their role in it. Don't assume your clients have experience with homebuying or selling, even if they've been through the process before. Each transaction presents unique circumstances, and procedures can vary between title companies and lenders. Remind clients that you're available to answer questions and support them throughout the entire process.

Title Review and Issue Resolution

Once the title search is complete, the focus shifts to reviewing findings and resolving any issues that could impact closing. This phase requires careful attention to detail and prompt action, as some title problems could need weeks to resolve.

Review the Title Commitment

The title commitment reveals the current state of a property's ownership history and any encumbrances that must be addressed before closing. While title companies work to resolve previous owner issues independently, they need your input on matters involving current clients. Agents should review this document carefully and reach out to the title company with any questions or concerns.

Common issues that appear in the title commitment include ex-spouses still appearing on the title despite divorce proceedings, old liens that should have been released but still show in public records, and discrepancies in property descriptions that don't match the contract terms.

Previous owner problems, like unresolved estate matters or improperly recorded documents, also may surface during this review. When agents spot these issues early, there's sufficient time to gather necessary documentation and work through resolution.

Provide Additional Documentation

Different situations may require specific documentation to clear title issues. Divorced sellers need their divorce decree, and depending on the decree's terms, a quitclaim deed from the former spouse may be required. When an owner has died, you'll usually need the death certificate, and you may be asked to provide additional by estate documentation such as wills or probate court orders.

Business entities selling property must provide LLC operating agreements, corporate resolutions, or partnership documents that demonstrate who has the authority to execute the sale. Trust properties require relevant pages from the trust document showing the trustee's power to sell real estate. Properties that have been subdivided or combined since the last survey need updated survey work to ensure the legal description matches what's actually being sold.

Your title company will let you know what documents are needed, but it is the agent’s responsibility to source these documents from their clients.

Agent Responsibilities

Your title company works to ensure that every transaction closes smoothly, but your proactive communication and attention to details on the front end make all the difference. Quick responses to title company requests prevent delays and keep the transaction moving forward.

While you're coordinating with the title company, don't forget your other closing responsibilities. Termite inspections and home warranties need to be ordered and scheduled. Any outstanding invoices for repairs, improvements, or services should be collected and forwarded to the title company.

HOA information often requires detective work, especially with smaller associations managed by individual residents. Provide contact names, phone numbers, and account details to help the title company order necessary letters and payoff statements. Double-check that all contract addenda have been submitted, as missing amendments can create last-minute complications when the title company coordinates with the lender to balance for the final closing package.

Final Closing Preparation and Coordination

The final week before closing brings together all the moving pieces of your transaction. During this time, attention shifts from resolving title issues to making sure every detail is coordinated for closing day. Small oversights during this phase can cause significant delays or complications.

Final Reviews

Any remaining invoices for repairs, improvements, or services need immediate submission to the title company. These invoices affect the final settlement statement, and late submissions force the title company to rebalance with the lender, potentially delaying closing. Similarly, missing contract addenda or amendments must be provided right away to avoid discrepancies in the closing documents.

When you receive the preliminary closing statement, review it thoroughly for accuracy. Check that commission amounts are correct and verify who's responsible for paying each expense. Look for any missing credits, debits, or expenses that should appear on the statement. This review represents your last opportunity to catch errors before closing day, so take time to examine every line item carefully.

Coordinate Payments

Payment coordination requires advance planning to avoid closing day surprises. Confirm that your buyer's bank can accommodate wire transfers, as some online-only banks lack this capability. Check wire amount limits with the title company, since certain transaction sizes may require alternative payment methods like cashier's checks.

Direct buyers to contact the title company directly for secure wire instructions rather than relying on email communication. This direct contact protects against wire fraud and ensures buyers receive authentic wiring details. Have backup payment arrangements ready in case wire transfers encounter technical difficulties or timing issues. Remember, all funds for closing must be in the form of certified funds – personal checks are never accepted.

Manage Logistics for Closing

Confirm closing details with all parties, including the exact time, date, and location. Verify that everyone has current, unexpired government-issued photo identification. Some lenders require two forms of identification, so communicate this requirement in advance to avoid panicked wallet-digging at the closing table.

If power of attorney documents are involved, confirm that the original paperwork will be available at closing. Address any lingering questions or concerns with the title company before closing day, rather than attempting to resolve issues during the appointment.

Best Practices for Communication Throughout the Closing Process

Effective communication remains the cornerstone of successful closings throughout the entire process. Respond promptly to title company requests, as delays in providing documentation or information can cascade into closing postponements. Don't assume that all title companies operate identically or follow the same procedures. What worked with one company may not apply to another, so always verify requirements with your specific closing attorney.

Maintain detailed records of all communications, decisions, and document submissions throughout the transaction. These records prove invaluable when questions arise weeks later or when similar situations occur in future transactions. Help manage client expectations by explaining that some requirements may seem unusual but serve important legal purposes. Prepare clients for the possibility of additional documentation requests and emphasize that early communication prevents closing day surprises.

While the title and closing process involves many moving parts, most issues can be resolved when there's adequate time to address them properly. The key lies in identifying potential complications early and maintaining open communication channels throughout the transaction.

At South Oak, we're committed to supporting agents and clients through every step of the title and closing process. Our goal is to ensure you have an outstanding experience from contract submission to the final signature. When questions arise or unique situations develop, don't hesitate to reach out to your closer guidance and support. Contact us to learn more about our title and closing services, or order a title and schedule a closing today.