Closing Timeline for Real Estate Transactions in Massachusetts
the timeline and key steps involved can help ensure a smooth transaction. Below is a detailed outline of the typical closing timeline, from the initial offer to the final closing day.
Overview of the Timeline
The entire process from accepted offer to closing usually spans four to six weeks. This timeline can vary based on various factors, including the specifics of the transaction and the parties involved.
- Initial Steps
Offer Acceptance: The process begins when a buyer submits an offer to purchase a property, which is then accepted by the seller. A deposit check, often referred to as the “Offer deposit,” is provided to demonstrate the buyer’s commitment.
Attorney Review Period: After the offer is accepted, Massachusetts attorneys will work together on a longer, more involved agreement known as the Purchase and Sale Agreement. During this time, both parties can make changes to the contract and either party can withdraw from the agreement without penalty if a final agreement, in good faith, cannot be reached following the terms of the Offer.
Home Inspections: If the offer includes inspection contingencies, the buyer typically has a time set in the Offer to complete any necessary inspections, such as home or pest inspections.
- Purchase and Sale Agreement
Signing the Purchase and Sale Agreement (P&S): Once inspections are completed and satisfactory, the buyer and seller will enter into a more detailed contract known as the Purchase and Sale Agreement. This document replaces the initial offer and outlines the terms of the sale.
Deposit Payment: At this stage, the buyer usually submits a second deposit, typically the balance of 5% of the purchase price, which is held in escrow.
- Mortgage Commitment
Mortgage Application: If the buyer is financing the purchase, they will apply for a mortgage. The lender will issue a mortgage commitment letter approximately three to four weeks after the P&S is signed. This letter confirms the lender’s agreement to finance the purchase under specified terms.
Title Search and Insurance: A title search is conducted to ensure there are no liens or encumbrances on the property. Buyers are encouraged to obtain title insurance to protect against any future claims.
- Preparing for Closing
Closing Disclosure Review: Buyers will receive a Closing Disclosure detailing the final terms of the mortgage and closing costs. It is crucial to review this document carefully.
Final Walkthrough: A final walkthrough of the property is typically conducted 24-48 hours before closing to ensure the home is in the agreed-upon condition.
- Closing Day
Signing Documents: On closing day, both parties meet to sign the necessary documents, including the mortgage, deed, and other legal papers. Buyers must also provide a certified check or wire transfer for closing costs.
Transfer of Ownership: Once all documents are signed and recorded at the Registry of Deeds, ownership is officially transferred to the buyer. The seller hands over the keys, marking the completion of the transaction.
Are you ready for your closing date?
OUR TURNARROUND IS 10 DAYS!
(2-3 Days in Cash transactions)
Understanding the closing timeline in Massachusetts real estate transactions is essential for both buyers and sellers. By following these steps and working closely with experienced professionals, such as real estate attorneys and agents, you can navigate the process with confidence. For personalized guidance through your real estate journey, contact our team at Selami Law, where we are dedicated to making your closing experience as seamless as possible.
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