What is closing?

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 completed.

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How long does settlement take?

Typically settlement takes less than one hour for a sale (2 parties) and 30 minutes for a refinance.

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Who 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 Company.

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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 HUD-1 form (PDF format)   

For a more detailed explanation of items on the HUD-1, click here.

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