The Closing Process Ritual in New Jersey
The Closing Process Ritual in New Jersey
The closing is the time at which you, the seller/owner, formally transfer ownership of your home to the buyer.
This process can take place anywhere both parties agree to.
In New Jersey, when the lender notifies that everything is ready, the closing attorney (usually the buyer’s attorney) will coordinate with all involved parties and their respective agents to schedule the “Closing Ritual”.
Within three (3) business days of the set closing date, the lender must provide the buyer with what is known as a “closing disclosure”. This document outlines and details the terms of the loan, and subsequently provides the funds the buyer needs at closing in order to finalize the purchase.
The “closing ritual” itself takes around an hour or less. It really is done in two parts.
The first part is for the buyer. That is when they are going over all the mortgage documents and signing them. During the first part of the ritual, the closing attorney (buyer’s attorney) will explain to each party what the closing documents mean and answer any questions either party may have.
Then the second part will be the seller coming to the table and signing the “affidavit of title” and “the deed” conveying the “title ownership” to the buyer. Presuming everything is agreeable, the buyer’s attorney will distribute funds from their trust account by check. Sometimes the sellers do not come to the closing because they have signed all the papers previously with their attorney. This is known as a dry closing. This has been mostly happening on both sides during the pandemic.
Once the closing has come to an end, the attorney will record the deeds at the county hall of records usually a week later. One deed covers conveying the property and the other the lender’s security deed. In New Jersey it takes approximately one month for the original deed to be returned to the buyer.
The Closing Process in Detail:
- Title Search: is run just prior to the closing ritual in order to uncover any assessments or liens on the title. When the title comes back as “clean” the closing can proceed unhindered.
- Attorney or title company prepares paperwork for the transfer of the title/deed and will file the application for title insurance presuming the lender requires such.
- A final closing date will be scheduled that is amenable by both parties.
- Calculation of the total amount (in the form of a cashier’s check) that the buyer needs to bring to the closing.
- Final walkthrough, usually performed the day of or the day before the closing ritual.
Buyer and seller, at closing (settlement table) sign all closing documents and any final loan documents.
Buyer remits remaining funds in their down payment to the attorney via cashier’s check.
Attorney records the transaction and deed with the local municipality and hall of records.
Buyer receives keys and legally takes possession of the property.
My Closing Thoughts
I hope that you have found this information helpful. Selling a home can be an emotional and an exciting time in one’s life. It can also be stressful as well. Knowing what to expect and how to best prepare for the process can help you remain calm and in control throughout.
