Closing or "settlement" is the completion
of the real estate transaction. During the closing, both the legal and
financial components of the transaction are finalized, the legal documents
are signed and delivered and the financial accounting between the parties is
How long does settlement take?
Typically settlement takes less than one
hour for a sale (2 parties) and 30 minutes for a refinance.
attend the settlement?
If the settlement involves a transfer of
ownership (a typical sale), the buyers(s), seller(s), their respective
attorneys and real estate agents will attend. The lender does not
usually attend and forwards their documentation and instructions to the
title company. WLT provides the Settlement Officer.
If the settlement is a refinance, the
buyer(s) and WLT Settlement Officer are in attendance.
It is preferred that the buyer(s) and
seller(s) attend personally. However if, for any reason, this is not
possible, these parties may prepare a Power of Attorney, which allows
another party to act on their behalf, including signing of the documents.
Note that the Power of Attorney must be prepared, approved and recorded by
the Title Company prior to the settlement. If the buyer cannot be
present, the Power of Attorney must also be approved by the Mortgage
What is the HUD
Settlement Statement (HUD-1)
The US Department of Housing and Urban
Development (HUD) Settlement Statement. The HUD-1 is a form used by
the settlement agent to itemize all charges imposed upon the buyer and
seller for a real estate transaction. It gives each party a complete
list of their incoming and outgoing funds. Fees associated with the
transaction but paid prior to closing are also included.
Click here for an example of the
For a more detailed explanation of items on
the HUD-1, click