I. Brokers
II. Contracts and Transfers
III. Mortgages and Foreclosure
IV. Deeds
V. Home Inspection
VI. Closing
VII. Glossary
Frequently Asked Questions

See also:

•  Overview of Residential Real Estate Transactions in Iowa.

What to Expect at Closing

Closing a purchase for real estate varies in each state. While some closings are done in your attorney’s office, others are completed at the lender's or a title company's offices. Either way, the closing meeting is where the ownership of a property is officially transferred. A closing may be attended by the buyer, seller, their brokers, and the closing agent. (Frequently, buyers and sellers never meet, and their agents and attorneys handle all of the interaction well before the exchange of the purchase price and the deed.)  If the buyer is borrowing money to complete the purchase, a representative of the lender may also attend. All open issues should be settled before the closing, yet not always. At the closing, any remaining open issues are settled, the closing statement is verified, and all necessary documents are signed. A real estate attorney can help to advise you through this process.

A good closing agent will help the buyer through the complicated aspects of the closing.  When financing is involved, however, the closing agent is typically there representing the interests of the lender.  While the buyer's and the lender's interests are closely aligned, they are not the same.  An attorney’s assistance can be invaluable in determining that the buyer has received everything the buyer has bargained for and that closing costs are allocated correctly.

The closing costs cover a large number of one-time fees. For the buyer, they also include the first year’s payment for homeowner’s insurance, real estate tax and one month of property taxes escrow, and mortgage interest. Other fees covered in closing costs include but are not limited to:

• Attorney fees
• Loan origination fees and rate discount points
• Appraisal fees
• Recording fees
• Survey fees
• Document preparation fees
• Inspection fees
• Homeowner’s association fees

At a closing, the seller and buyer will provide items required by the contract, such as proof of homeowner’s insurance, warranties, and other documents. Once both parties have approved the closing statement and all documents, the seller and buyer sign the statement, the buyer signs the mortgage, and the seller signs the deed and transfers ownership. Generally, the buyer pays all closing costs unless otherwise stated in the purchase contract. The closing agent provides the buyer with a settlement statement detailing the closing costs, and then records the deed and (when applicable) the mortgage.

The buyer usually receives the following documents:

• Settlement statement
• Mortgage and mortgage note
• Copy of the deed
• Truth-in-Lending statement
• Sales contract
• Keys to the property
• Any required affidavits

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