Real Estate Closing Questions – What Buyers and Sellers Need to Know

Closing is the final hurdle before the keys change hands in a real estate transaction. Ensuring that everything goes smoothly means asking the right questions at the right time. The closing process involves its fair share of paperwork and stress, but knowing what to ask can save you time, money, and headaches.

Prevent unexpected issues and make the transition smoother. This list of questions to ask before closing day addresses information for both the home buyer and seller.

Who Should Be Involved in the Closing Process?

Before we get to the questions, you need to know who to direct them to. A home sale closing process typically involves:

• Your real estate agent
• The other party’s real estate agent
• The buyer and seller
• An escrow or title company representative
• Your real estate attorney (if required in your state)
• A lender or mortgage broker

Each party plays a role in the transaction. They are your point of contact for anything that could go wrong or need clarification in the days before closing.

The Closing Process

Closing culminates in the day you sit with your escrow agent or attorney and real estate agent to sign the final paperwork. But the actual closing process is a slow build. This signing is the last step in the home buying or selling journey, where property ownership is officially transferred. Before you get there, you’ll be busy:

• Conducting a Final Walk-Through: Before closing, walk the property to ensure that it is in the agreed-upon condition and that any major repairs have been completed.
• Reviewing Closing Documents: Three days before the final signing, you’ll receive a closing disclosure form. Review it carefully to ensure there are no errors or surprises.
• Transferring Funds and Completing the Sale: First, you’ll verify you have funds ready before closing day. Then, the closing agent will require wiring the necessary funds or bringing a certified check to complete the purchase. Confirm the details with your title company to avoid any mishaps. Most funds need to be wired 24 hours in advance.
• Reviewing and Signing Closing Documents: You’ll need to review and sign a stack of closing documents carefully. These include the loan agreement, final closing disclosure, property deed, and other disclosures.
• Updating the Property’s Title and Ownership Records: The title company will update the title and ownership records with the county or city to reflect the new owner.
• Paying Closing Costs: Buyers and sellers pay fees at closing, such as loan origination fees, title insurance, appraisal fees, and property taxes..

Understanding these steps can help you confidently approach closing and avoid last-minute surprises.

Questions for Buyers to Ask Before Closing

Financial & Loan Questions

Money matters, so triple-checking the numbers before you sign on the dotted line is essential. Even banks can and do make mistakes. Or, there may be a detail they forgot to mention that changes what you’ll owe or receive. These questions can help:

• Are there any hidden fees in my closing costs? Transparency is key. Make sure all fees are clearly outlined in your closing disclosure. Ask the same question to the escrow agent or the person preparing the final paperwork.
• When is my first mortgage payment due? Knowing this timeline helps you avoid a nasty late fee right out of the gate.
• What happens if my loan terms change before closing? Loan terms shouldn’t change at the last minute. If they do, ask for clarity and weigh whether the deal still works for you.
• Do I need to provide proof of homeowner’s insurance at closing? Yes, proof of homeowner’s insurance is required for financed properties. The escrow agent often needs it to finalize the financial arrangements– setting up escrow accounts that will collect and pay for property taxes and insurance. Homeowner’s insurance can start on closing day, but they’ll want evidence you’ve purchased a policy in advance.

Property & Inspection Concerns

You’ve inspected the home, and the seller promised to fix that leaky faucet. Now’s the time to verify that everything’s taken care of:

• Have all repairs been completed as agreed upon? Request proof or check yourself during the final walkthrough. Bring the original inspection report and your list of negotiated remedies. Ideally, the final walk-through is held 1-2 days before closing and is the buyer’s chance to double-check the home’s condition.
• Are there any outstanding permits or liens on the property? These could delay the closing or become your problem after purchase. Don’t skip the title search! It finds these issues, even if the owner wasn’t aware. The title search company should issue a clean title certificate if all is well.
• What warranties come with the home? Ask about warranties for appliances, the roof, or even the structure—especially for newly constructed or renovated homes. These are in addition to any requested home warranty in the contract.
• Has the seller provided a lead-based paint disclosure? This disclosure is crucial for understanding the home’s condition and your legal responsibilities. Sellers are required to inform buyers about issues such as lead-based paint, which can have significant health and legal implications.

Title & Legal Questions

A clear title is non-negotiable when purchasing property. Ask:

• Is the title clear and free of claims? The title company should confirm this in writing. Titles can have claims from government agencies or contractors seeking payment from late invoices.
• Do I need title insurance? Spoiler alert—you do. Title insurance protects you from any lurking title issues after purchase. Mortgage lenders require title insurance as a condition of the loan. Owner’s title insurance is optional but protects you if any ownership claims are made or suits are levied for unpaid contractor work.
• Who is responsible for unpaid property taxes? The seller is responsible for resolving unpaid taxes, but you should ask to confirm.

Closing Day Logistics

The big signing day is here. Avoid surprises by covering these details:

• What do I need to bring to the closing? Usually, your government-issued ID, proof of insurance, and a cashier’s check or wire transfer details.
• How will I receive the keys to my new home? Clarify the handover process, whether in person or via lockbox. Remind any seller to leave all access information, including codes, keys, and garage door openers.
• What happens if the seller does not vacate on time? Discuss legal protections and backup plans to avoid last-minute panic.

Questions to Ask Seller At Closing

By now, you’ve reached the point where you’re signing the deed and taking over ownership. Your most important questions should have been answered at this point in the process. But there are some other items you may want to know as you move into your new home, such as:

• What companies did you use to service the furnace, HVAC, pool, plumbing, etc.? Were you happy with their service?
• Do you get a lot of kids for Halloween?
• Are there any shortcuts through the neighborhood?
• What are your favorite nearby restaurants?
• How well did you know the neighbors? (This can reveal whether there are any to avoid or whether they had a good relationship with the people next door.)
• Where are the shutoffs for water and natural gas?
• Did you leave any warranty or appliance manuals behind?

Questions for Sellers to Ask Before Closing

Selling your home involves just as many moving parts as buying one. Here’s what sellers should ask before handing over the keys:

Financial Considerations

Sellers want to ensure they walk away with every penny they’re owed:

• How will I receive my proceeds from the sale? Confirm if it’s via wire transfer, check, or another method. If funds are being sent to another title agency or escrow to purchase another home, confirm that happens, too. Understanding the timing of disbursements is crucial to prevent fraudulent activities such as wire fraud and identity theft.
• What are the final costs and deductions I should expect? These include agent commissions, closing costs, and any payouts for unresolved taxes or liens. All should be outlined in the closing disclosure, but it’s good to have awareness long before the official paperwork arrives. A seller’s agent may generate an estimated net sheet at beginning.
• How does the escrow process work for home sellers? Understanding this can ensure a smooth release of funds.

Legal & Contractual Matters

Protect yourself legally with these questions:

• Are there any last-minute legal documents I need to sign? Confirm whether everything is signed in advance to avoid delays. Sometimes, sellers can sign their paperwork before the closing day.
• What happens if the buyer backs out? It’s rare, but it does happen. Learn about your legal options and any remedies outlined in your contract.
• Am I responsible for any post-closing issues? For instance, buyers may return with complaints about undisclosed defects. Clarify your liability.

Closing Day Logistics

A stress-free move-out requires careful planning:

• When do I need to vacate the property? Check if you have a grace period or a specific deadline. Make arrangements to meet this moving-out deadline.
• What condition should the home be left in? The contract may stipulate a “broom clean” condition. Be sure to meet this obligation.
• Do I need to be present at the closing, or can I send a representative? If you’re unavailable, you may be able to send a power of attorney. Some states allow sellers to sign their portion of the closing documents in advance, with final copies distributed after the official closing.

Common Closing Delays and How to Handle Them

Despite your best efforts, delays can happen. Here are a few common culprits and how to handle them:

• Last-minute financing issues: Buyers should communicate early and often with their lender to avoid hiccups. That includes being responsive to any requests for more paperwork, not opening any new lines of credit, or communicating date changes. Differences in home appraisal value–when the property value comes in under the purchase price– are another common hiccup. It may require another appraisal or renegotiation of the sale price.
• Problems with title clearance: Address title issues well before closing day. Clearing items like tax liens and judgements may take weeks, pushing back the real estate transaction.
• Inspection disputes: Sometimes, news of a home inspection leads to changes in the purchase contract. This could be a request to remedy or a request for a credit. Sellers should ensure all agreed-upon repairs are completed on time. Buyers should confirm during the final walkthrough, ideally before closing day.
• Document processing delays: Work closely with your real estate agent or attorney to ensure all documents are submitted on time.
• Not bringing the correct checks: Sometimes, the buyer brings a personal check instead of a certified check. This delays the closing as personal checks can’t be accepted to prevent fraud.

A little flexibility and patience go a long way in resolving these issues.

Final Tips for a Smooth Closing

Want to ace your closing day? Here’s how:

• Review all documents in advance: Ensure you understand what you’re signing—ask questions if anything feels unclear.
• Communicate with your real estate agent and attorney: They’re your allies in making the process go smoothly. Transparency at every step keeps any hiccups at bay.
• Plan for unexpected delays. While frustrating, some delays are unavoidable. Stay calm and work toward solutions. Sometimes, situations out of our control–like a winter blizzard on a scheduled closing day or a moving error—cause sellers to delay moving out. Every problem has a solution.

Closing Thoughts

Closing day marks the start of a new chapter, whether you’re buying your dream house or parting ways with a cherished property. By asking the right real estate closing questions, you can avoid pitfalls and make informed decisions every step of the way.

If you’re unsure, remember that professional guidance is just a call away. Your real estate agent, attorney, and title company are there to help. And ultimately, when you’ve crossed the t’s and dotted the i’s, closing day can be smooth, stress-free, and maybe even exciting!