North Carolina Real Estate Closings

Buying real estate in North Carolina is nothing like other purchases that you may make. More importantly buying real estate in North Carolina is unlike buying real estate in Illinois, New York and other states.

Most other states use title insurance agencies for closing. The closing itself is performed by the title insurance agency. In many states you come to closing and find a title company attorney, an attorney for the lender and an attorney for the seller. The North Carolina closing process typically only includes one attorney and that attorney represents you and the lender. In rare cases -if you allow it - the attorney represents you, the lender and the seller.* (Ask yourself do you really want the attorney for the seller representing you when it comes time to a dispute?)

If you are about to make one of the costliest purchases of your life; when do you hire the attorney? Most people don't bring the purchase contract to their attorney until after it is signed and at that point there is little that the attorney can do. Think about it, the attorney can give you more insight into the contract and the closing then any other party to the closing process. Before you sign the contract there are four things that you should do (1)walk the property; (2) view the property on the recorded plat; (3) check the covenants that apply to your property and (4)have the attorney review the contract and ask him or her any questions that you may have!

Once the contract has been reviewed, approved and signed consider what inspections and services you will need. You lender will obtain the appraiser but you should consider a survey, a home inspection and a radon inspection. A survey can uncover problems that may be very costly at a later time it can also give you guidance for landscaping, fences or walkways. At an average cost of $350 many find that the long term advantages of the survey outweighs the cost. Your closing attorney will order the survey for you.

Typically, the buyer and the agent will coordinate the pre-closing process (ordering inspections, arranging the walk through and reinspecting repairs). The closing attorney will send to the agent a summary of all costs associated with the closing. The costs of the closing appear in document called a settlement statement (HUD1). The agent will typically review the HUD1 with you shortly before the closing.

It is important that all repairs and inspections be completed prior to the closing. At closing you are normally accepting the delivery of the property. If there are things that have not yet been completed wither delay the closing or have a writing created setting out what is to be completed.

Your NC closing will most commonly occur in the lawyer's office. Demand that the lawyer be in the room to answer your questions and explain the documents. Don't accept answers from the paralegal talk with the lawyer.

At our office Puddles and I will be with you for the closing ceremony. Another entry will discuss the closing ceremony. Have fun!