Once the contract has been signed, there is a time period allowing the buyer to obtain the necessary financing to make the purchase and to obtain a title search of the premises. Once this is accomplished, the closing takes place. Closing the Transaction At the closing, a legal document called a deed passes ownership from the seller to the buyer, in exchange for the buyer remitting the balance of the purchase price. The deed must be lawfully executed, meaning that it must be in writing, signed by the parties, and describe the land. It must also be delivered meaning that, as a legal matter, the seller intends to be immediately bound by the transaction.
Most deeds contain various promises known as covenants.
Generally, this is accomplished by sending the deed to the county clerk s office for filing in the public records. The filing of the deed is public notice of the ownership of the property and gives the purchaser certain rights against others who might have a claim to the property. For example, once the deed has been recorded, subsequent debts or other obligations of the prior owner do not become a lien on the property. Ask an expert or become an expert . Click here for details on our Full Disclaimer and Terms of Service.