Closing Process

Closing Process–I've noticed that some clients are clueless about what to do, come closing day. So I decided to write a post to delineate the (usual) process for a condo unit.

1. Presentation of Documents

The Buyer will compare the original Title/s held by the Seller to the certified copies and check if the following details are the same:

a. Title Number/s

b. Owner's Name/s

c. Absence of encumbrances

d. Other minute details (e.g., RD Officer who signed, dates, etc.)

2. Presentation of Checks

The Seller will verify the manager's checks with the issuing branch to know whether they're funded. After which, the Seller will compare the checks' amounts with a pre-approved "Breakdown of Payments" calculation. He also ensures that the checks' total amount equals the total purchase price (less earnest money, if applicable).

3. Presentation of Documents for Execution

The Broker will show the Seller and the Buyer the documents for signing to know whether these are the same as the pre-approved versions routed before the closing date.

4. Signing of Documents

The Seller and Buyer will sign the pertinent documents. The two most important documents are the Deed of Absolute Sale and the Acknowledgment Receipt for Full Payment (AR).

5. Distribution of Checks

The Buyer distributes the following checks:

a. Net proceeds (to the Seller)

b. Broker's Professional Fee (to the Broker/s)

c. Capital Gains Tax (to the Broker)

d. Doc. Stamp Tax (to the Broker)

6. Distribution of Documents and Items

a. The Seller gives the Title/s to the Buyer (or it could be given to the Broker since they'll be doing the transfer).

b. The Seller gives all sets of keys to the Buyer.

c. The Broker gives the Seller and the Buyer each an unnotarized copy of the signed documents. The Broker will keep the rest of the documents since they'll need these for the transfer.

7. Introduction to Building Administration

The Seller shall introduce the Buyer to the personnel of the property. This is so that security treats the new owner of the property courteously.

End of Meeting.

8. After the meeting, the Broker will have the documents notarized. Strictly speaking, the date of notarization should be the same day the parties signed them. After notarization, the Title transfer process and the deadlines for tax payments commence.

9. The Broker provides the Seller and the Buyer with the notarized copies.

The whole process could be as fast as 20 minutes, depending on issues that might pop up in the meeting.

Let me know in the comments section if I need to include anything.