As a buyer’s or seller’s agent, it is wise to create a real estate closing checklist that clearly outlines the process for your clients. Since the buyer and seller play separate roles in the transaction, you must prepare distinct real estate checklists for whichever party you represent. To ensure pleased clients and commission in your pocket, download each free checklist below and then select from the drop-down menu to review the contents in the buyer and seller real estate closing checklists.
The Buyer’s Closing Checklist
1. Name the Players in the Transaction
On your real estate transaction checklist, you should have a spreadsheet listing all parties involved and their contact information. This makes it easy for you to contact the appropriate party to address any situation. It’s best to share this spreadsheet with the buyer’s and seller’s agents to ensure both sides are kept in the loop and aware of all participants.
The real estate closing checklist for buyers should list the following people:
- Buyer(s): Client(s) who are purchasing the home
- Seller(s): Client(s) who are selling the home
- Buyer’s agent: Representation for the buyer(s)
- Seller’s agent: Representation for the seller(s)
- Transaction coordinator (for buyer and seller’s agent, if applicable): Individual working for each agent’s firm who helps coordinate the transaction timeline and documentation
- Lender/loan officer: Bank institution that is financing the sale for the buyer
- Title company: Verifies that the title to the property being purchased is legitimately given to the buyer
- Escrow company/escrow officer: Holds and manages the funds during a real estate transaction until closing
- Attorney (if applicable for state): Real estate agents never give legal advice, so clients should always consult an attorney for legal questions
- Accountant: Similar to attorneys, agents should never give financial advice, and clients should consult an accountant for financial-related information
- Inspection company(ies)/inspectors: Always avoid liability―have your buyer hire professional inspectors (e.g., home inspectors, termite inspectors, radon inspectors, pool inspectors, roof inspectors, and chimney inspectors)
- Insurance company/agent: Homeowner’s insurance is crucial and is required by the lender; even if you purchase a home with cash, it is a good policy to secure insurance on the home
2. Create a Transaction Timeline With Contingencies
When a property goes under contract, a timeline outlining important dates and the final date of closing should be provided to all parties. This deadline is typically based on the average amount of time it takes to get financing from a mortgage lender and is agreed upon between the lender, the agents, and the buyer and seller.
Closing requirements include appraisals, inspections, and loan contingencies. In addition to the final date of closing, there are deadlines for each part of the transaction. Use our real estate closing checklist template to see how the timeline for each step of the transaction should be clearly set.
A few of the most important steps of the transaction timeline include:
- Inspection contingency: This gives buyers the right to have the home professionally inspected before moving forward with the purchase. If a significant issue is identified in the inspection, the buyer can request to have it fixed by the seller or back out of the sale.
- Appraisal contingency: A third party (usually a mortgage lender) hires an appraiser to evaluate the home’s market value. If the appraised value is less than the sale price, the buyer can refuse the deal without forfeiting their earnest money.
- Loan (or finance) contingency: A buyer has a certain amount of time to secure a loan if they decide to finance the purchase. This contingency allows the buyer to back out of the deal if their mortgage falls through and prevents them from completing the purchase.
Timelines are essential, and you should make every effort to meet them. When an unforeseen event occurs, you must proactively get back on track as soon as possible. Ensure all parties have examined the transaction timetable and are on the same page to respect the contract and meet the requirements.
3. Lender Requirements & Appraisal
Most homebuyers meet with a lender to get pre-approved for a mortgage loan before visiting properties. In order to approve buyers for a mortgage, lenders typically require income-related documents like pay stubs or tax returns, details on investments, bank statements, employment history, and credit reports.
Once the property is under contract, the lender will have additional requirements to finance the property. When you look at our real estate transaction checklist templates, keep in mind that the exact requirements will vary based on your state laws, the lender your clients choose, and the property being purchased. In general, the lender will require:
- Property appraisal: An appraisal is an evaluation of a property’s condition that determines its value. Lenders require an appraisal to ensure that the property’s value is sufficient to cover the money given to the buyer.
- Property survey (or land survey): A property survey defines the boundaries of a property and identifies any encroachments or easements. This ensures that there are no boundary disputes or title issues that could affect the loan.
- Title insurance: Most mortgage companies require title insurance to protect the lender and the buyer against any defects or issues with the property’s title. It covers losses that could result from title defects, liens, or encumbrances if they weren’t found during the title search or property survey.
- Additional income and asset documentation: Mortgage companies will require additional documentation, like bank statements and pay stubs, to determine that the borrower is financially stable and can repay the loan.
- Homeowner’s insurance: Home insurance is required by lenders to ensure that buyers will be able to pay the loan even if the property gets damaged or destroyed. Buyers are required to find home insurance separately from their mortgage lender and provide proof of it before closing.
4. Ordering Inspections
Most real estate contracts include a contingency based on the results of a home inspection. This allows buyers to hire a professional home inspector after the property is under contract to examine the property’s condition. The inspector will take pictures and write a detailed report of the property.
They examine many areas of the home, including:
- Home structure
- Major appliances
- Roofing
- Ventilation and air conditioning (HVAC)
- Plumbing
- The existence of harmful chemicals
- Pests like termites or rodents
The buyer’s checklist for realtors should include notes to evaluate the results of the inspection immediately. If the buyer wants to request repairs or negotiate the contract, they must do so within the time frame outlined in the contract.
5. Closing Documents
In some areas, like New Jersey, real estate agents may use attorneys to manage real estate transactions, unlike in California, where agents use title and escrow companies. To balance the figures and the terms of your buyer’s loan, the title company (and/or attorney) and the lender will work together. After this is done, the lender will coordinate your buyer’s loan documents to be sent to the title company to be prepared and signed.
Additionally, the lender will let your buyer know how much money they need to wire to the title company. The funds should be wired a few days before closing to ensure the funds clear the account. Money will be kept in escrow until all paperwork is signed.
Closing documents vary based on the state, but most often include the following:
- Completed loan application: The buyer will receive a new printout of the application they submitted for the loan and must verify the information for accuracy.
- Bill of sale: The bill of sale documents the personal property of the home that will be transferred to the new owners (appliances, furniture, light fixtures, and so forth).
- Monthly payment letter: A breakdown of the buyer’s monthly payments (e.g., mortgage, principal, interest, and taxes).
- Proof of homeowner’s insurance: If the buyer has financing, they must provide proof of insurance to the mortgage lender for the duration of the loan (even if a buyer is paying with all cash, they should still have homeowner’s insurance).
- “Truth in lending” statement: This outlines the total amount of the buyer’s loan over its lifetime (interest rates and annual percentage rate).
- Closing disclosure: This document will show you the purchase price, loan amount, precollected taxes, credits, insurance, lender fees, title fees, real estate agent broker fees, and any other charges related to the purchase. Your lender must disclose this to you three days before closing.
- Amortization schedule: This is a schedule of your loan payments over the life of the loan.
- Title commitment: This document shows the chain of title and any judgments, liens, or claims on the property. The title company’s job is to prepare a clean title to pass on to a new buyer.
- Title insurance: There are two types of title insurance—the lender’s policy and the owner’s policy. The lender’s policy is obligatory and protects the lender from title issues. Depending on the title company, the owner’s policy is sometimes optional and protects the owner from any title issues.
- Mortgage: A mortgage is a lien that holds the property as collateral for repayment. Anyone who appears on the deed will appear on the mortgage and sign. This will be recorded in public records.
- Note: The note is attached to the mortgage. You are required to repay the loan following the mortgage note terms. After closing, your lender might sell this document to a larger lender. You will pay your mortgage to whomever possesses the note.
- Deed: The deed documents the transfer of ownership from one owner to the next and will include the legal description of the property and the names of the sellers and buyers. The deed will be entered into public records after closing.
During this process, you must check in with your buyer and guide them on the final details of signing their loan documents. Your buyer will be asked to provide a valid form of identification at the time of signing, which may need to be a government-issued identification, such as a driver’s license or a passport, since closing documents will be notarized.
6. Final Walk-through
One to three days before the closing of escrow, you and your buyer will typically conduct a final walk-through. This is done to ensure the house is in good condition, especially if there were any repairs the seller agreed to make in response to inspection findings. Your primary role as the buyer’s representative is to guarantee the home they are purchasing is up to par with the money they are paying, so don’t leave any stone unturned. Your buyer checklist for realtors should include specific items to test, like:
- Testing all appliances, plumbing, heating and cooling, and outlets
- Run a quick cycle on the dishwasher and laundry machines
- Preheat the oven
- Flush the toilets
- Run the hot and cold water at each sink
- Look inside each cabinet
- Test the fire alarms
- Briefly turn on the heat and air conditioning
7. Closing & Presenting Keys
Finally, the closing day has arrived. Typically, the closing will occur at the attorney, title company, or lender’s office, where your buyer must sign a slew of documents to complete the sale.
As the buyer’s agent, you should already have spoken to your client about any closing costs they need to pay to complete the transaction, so there are no surprises. After your client has signed the mountain of paperwork, they can get the keys to their new home.
This is a fantastic time to celebrate with your buyer and solidify that you will be their real estate agent for life. Whether the transaction went smoothly or you went through the wringer to get this home, you can create a positive experience by maintaining deadlines, professionalism, and preparing your buyer throughout the process.
8. Moving Checklist
Another great option to add to your real estate checklist for agents is a moving checklist for your buyers. It includes tasks to do before and on the day of moving, like decluttering, purchasing moving insurance, and disassembling furniture. A buyer moving in from the area will be especially appreciative of your guidance in moving to the new space.
Download our free moving checklist and customize it to provide the most value to your clients:
As the buyer’s agent, you are not responsible for setting up these services for them. However, by providing these resources, you are supplying your buyer with an outstanding beginning-to-end transaction that will have your clients singing your praises to others who can, in turn, become client referrals in the future.
The Seller’s Closing Checklist
1. Name the Players in the Transaction
On your real estate transaction checklist, you should have a spreadsheet listing all parties involved and their contact information. This makes it easy for you to reach out to the appropriate party to address any situation. It’s best to share this spreadsheet with the buyer’s and seller’s agents to ensure both sides are kept in the loop and aware of all participants.
The real estate closing checklist for sellers should list the following people:
- Buyer(s): Client(s) who are purchasing the home
- Seller(s): Client(s) who are selling the home
- Buyer’s agent: Representation for the buyer(s)
- Seller’s agent: Representation for the seller(s)
- Transaction coordinator (for buyer and seller’s agent, if applicable): Individual working for each agent’s firm who helps coordinate the transaction timeline and documentation
- Lender/loan officer: Bank institution that is financing the sale for the buyer
- Title company: Verifies that the title to the property being purchased is legitimately given to the buyer
- Escrow company/escrow officer: Holds and manages the funds during a real estate transaction until closing
- Attorney (if applicable for state): Real estate agents never give legal advice, so clients should always consult an attorney for legal questions
- Accountant: Similar to attorneys, agents should never give financial advice, and clients should consult an accountant for financial-related information
- Inspection company(ies)/inspectors: Always avoid liability―have your buyer hire professional inspectors (e.g., home inspectors, termite inspectors, radon inspectors, pool inspectors, roof inspectors, and chimney inspectors)
- Insurance company/agent: Homeowner’s insurance is crucial and is required by the lender; even if you purchase a home with cash, it is a good policy to secure insurance on the home
2. Create a Transaction Timeline With Contingencies
When a property goes under contract, a timeline outlining important dates and the final date of closing should be provided to all parties. This deadline is typically based on the average amount of time it takes to get financing from a mortgage lender, and is agreed upon between the lender, the agents, and the buyer and seller.
All parties must read the transaction timeline and agree with it. Although buyers generally have more tasks to complete within the timeline, homesellers may be simultaneously selling their property and buying another one. This means that if something disrupts the process, there can be a domino effect of complications. For this reason, having a printable real estate transaction coordinator checklist for yourself, your clients, and buyers party can maximize efficiency.
Having a checklist for closing is not only useful for agents, but it’s an important communication tool between agents and their clients. This is why it’s also essential to have a checklist for the process of listing a seller’s home. If you don’t already have one, read our guide to the Real Estate Listing Checklist for Agents (+ Free Download).
3. Review Inspections & Repair Requests
If you and your seller have accepted a contract with contingencies, there may be a need to renegotiate after the inspection or appraisal. This is an important item on your realtor closing checklist that should be discussed specifically with your clients when you get the listing. The seller shouldn’t be surprised or taken aback if the buyer’s agent sends you a repair request or requests credit for repairs after an inspection.
If repairs are needed and the seller will be completing it themselves, they should be prepared to hire a professional to get the work done as soon as possible to ensure no delays occur at the closing table. As an agent, facilitate this process by working with your client to schedule a consultation and time frame for completing the work, including any necessary follow-up inspections.
4. Closing Documents
During the transaction, the title company or attorney will mail or email important documents to the homeseller, like a statement of identity (checking any liens against the seller) or a payoff request (a document sent to all lien holders to clear the title). As the agent, ensure the title company sends you the seller’s estimate and review it carefully before sending it to your seller. It is always suggested that you have this information forwarded before signing closing documents so you can make corrections and address any concerns.
Once the buyer’s closing documents are ready to be signed and the date is set, prepare your clients for the final closing. Sellers need valid identification, such as a current driver’s license or passport, to notarize closing documents. Additionally, ask your seller to have the account number or wire instructions available for where they would like their proceeds deposited. After their home closes and ownership is transferred, electronically wired funds will be available to the seller sooner than if they have to wait for a check to clear.
5. Move Out & Prepare for Final Walk-through
One of the final items on your real estate closing checklist template for sellers is the final walk-through. This is the last time the buyers have an opportunity to see the home and ensure it’s ready for them to purchase. By this point, the sellers must be completely moved out of the home, have all the necessary repairs completed, and leave the home clean and ready for its new owners.
To provide the most value to your listing clients, give them a checklist to follow for the moving process.
- Include phone numbers for services the seller will need to cancel on their home, such as water, garbage, and electricity.
- Advise your sellers to schedule the turn-off or transfer of ownership of services after the buyer’s final walk-through. If services are turned off beforehand, the buyers will not be able to confirm certain items are working, like electricity, water, or gas.
- Have your sellers notify the post office of their new address so mail will be forwarded and not sent to the new homeowners.
- Tell sellers to pack their belongings and contact a moving company before closing to make room for the buyers coming in.
As their agent, you are not responsible for setting up these services for them. However, by providing them with a beginning-to-end transaction that will have clients singing your praises to others, you’ll generate valuable real estate leads from referrals.
6. Conduct Final Walk-through
The homesellers are typically not present for the final walk-through, but it’s relatively common for the sellers’ agent to attend. The buyer and their agent will inspect the property to ensure it is in the same condition as when they first viewed it and that any promised repairs have been executed. It is always a kind gesture to have some information on the specifics of the house available for the buyer during the walk-through. The seller could also want to leave a list of companies, including landscapers and pool services, that can continue to maintain the property.
7. Closing & Presenting Keys
On closing day, your sellers will visit the title company or attorney’s office to sign the papers and officially transfer ownership. In some cases, this process will be done online. Before this final appointment, the sellers should give you the keys and leave other items, like garage door remote controls, mail keys, and appliance manuals, in a clear spot in the house.
The title company or attorney will present the final seller’s estimate and/or deed so that the seller can close their utilities if requested. As the seller’s agent, you should have spoken to your client about any closing costs that need to be paid after completing the transaction so there are no surprises.
8. Post-closing Tasks for Agents
After the closing appointment, the homeseller’s job is done, but the agent’s job is not. Your real estate closing checklist should include reminders to remove the property’s for-sale listing from your advertising sites, such as Zillow, Realtor.com, the local MLS, or Craigslist. You should also update social media accounts like Facebook and Instagram to reflect that the property has been sold.
Frequently Asked Questions (FAQs)
A real estate closing checklist is a detailed list that outlines the tasks, documents, and appointments necessary to close on a property. The required tasks and items for a successful closing are different for buyers and sellers, so you should have a custom real estate buyer checklist and seller checklist to support each type of client.
The standard process of closing on a house starts with a homeseller accepting an offer from a buyer. Then a title company or attorney opens an escrow account to hold earnest money until closing. Subsequent steps include a home inspection, appraisal, finalizing mortgage details, negotiating repairs, a final walk-through, and finally, closing day. On closing day, legal documents are signed, funds are transferred, and ownership is officially transferred.
The information needed for closing varies between agents, buyers, and sellers. Ultimately, all parties should understand their closing costs, contingencies of the agreement, the transaction timeline, and their personal responsibilities.
Bottom Line
For buyers and sellers, closing on a home can be an extremely stressful and confusing experience. By using a real estate closing checklist, you can provide them with valuable information and clearly communicate the necessary steps to keep them on track and reduce unnecessary stress. With strong systems to keep the process moving forward, you will become a successful real estate agent with a raving fan base of clients who will continue to refer business to you for years.