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Closing the Deal: Disbursing Funds and Transferring Ownership When Selling Your Home

Mortgage Daily

Published On: February 5, 2023

It is time to distribute the monies and transfer ownership of the property by the contract’s provisions once the closing paperwork has been examined and signed. This might involve settling unpaid debts, giving the buyer the title, and sharing the sale’s earnings.

Pay Off Outstanding Debts

Any unpaid obligations, including mortgages, liens, and taxes, must be settled before the transaction may be consummated. The title or escrow business, which will also ensure that all debts have been settled before transferring ownership to the buyer, usually handles this.

Transfer the Title

The buyer can get the title to the property once all unpaid obligations have been settled. Usually, the escrow business or title company records the ownership transfer with the county clerk or local government.

Distribute the Proceeds

The contract will distribute the sale funds when the title has been transferred. The leftover cash may then be given to the seller, together with any closing charges and outstanding obligations.

Obtain a Release of Lien

In some circumstances, a lien may be put on the property, such as a mechanic’s lien for work done or unpaid taxes. To ensure that the buyer will have a clear title to the property, a release of the lien must be obtained before the sale can be finalized.

Review the Settlement Statement

To be sure that the terms of the contract have dispersed all monies, it is crucial to carefully examine the settlement statement, which will list all of the costs and payments connected with the transaction, including any fees or commissions.

In conclusion, an essential stage in selling your house is disbursing the payments and transferring property ownership by the contract terms. You may assist in making sure that the sale goes well and that everyone is pleased with the results by paying off any unpaid obligations, transferring ownership, and dispersing the money. You may assist in preventing any possible problems or disputes and guaranteeing that the terms of the contract complete the transaction by dealing with a reliable escrow business or title company and carefully checking the settlement statement.

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