Real Estate Closing Checklist for Buyers & Sellers (+ Free Downloads)

1. Name the Players in the Transaction

A spreadsheet listing all parties involved in the transaction should include each party’s contact information in case anyone has to be contacted at any stage during the process. It would be best if you 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

A timeline outlining important dates and closing deadlines will be provided to all parties at the beginning of escrow, either by you or a transaction coordinator. The timeline should outline each step on this real estate closing checklist template and the crucial deadlines that must be met for the transaction to be successful.

Closing requirements include appraisals, inspections, and loan contingencies. Furthermore, there are specific time periods for each of these contingencies to be met and removed.

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 for the ownership transition on time.

3. Lender Requirements & Appraisal

Most buyers meet with a lender to get pre-approved for a loan before submitting an offer on the house. To qualify your buyer, a lender will need a set of documents, including income-related documents, pay stubs, tax returns, investments, bank statements, and credit reports. During the transaction, the lender will ask your buyer for updated bank and income records, and they will also need the buyer’s employer’s contact details to confirm your employment status.

The lender will also arrange an appraisal at the beginning of the transaction to ensure that the property’s value is sufficient to cover the money lent to the buyer. In a competitive market where sellers frequently get several offers, the buyer may waive the appraisal contingency. The buyer and the seller may need to revise the initial conditions of the contract if the appraised value is too much below the amount of the sale price.

In this scenario, the buyer may be required to pay more for the home than the appraisal determined the house was worth. The buyer who chooses to take this risk should have additional funds documented in bank statements to cover the gap between what the lender is willing to lend versus the amount of money needed to finalize the purchase.

4. Ordering Inspections

According to the purchase contract, the buyer can conduct any inspections to eliminate any worries they have. To be competitive, buyers may shorten their time frames to complete inspections quickly. A professional home inspector should be hired to examine the home during this time. It can range from $300 to $500, depending on the inspections required by your state and insurance company.

They may examine any number of items, including the home’s structure, exterior and interior, major appliances, ventilation and air conditioning (HVAC), outbuildings, and the existence of harmful chemicals. They will also inspect for pests like termites or rodents, which can cause damage that can otherwise remain unseen.

The inspector will take pictures and write a detailed report of the property. The buyer and their agent should evaluate the results as soon as possible after the inspection report is received. If the buyer wants to request repairs, they should do so in the time frame outlined in the contract to negotiate terms with the seller. A follow-up inspection may be necessary before closing, depending on the importance or severity of the things that need to be repaired.

Communication is vital during the inspection time frame. Once the inspector finds damage or repairs are needed, call the seller’s agent to inform them of the items noted. Set the expectations and ensure the real estate listing agent can speak with the seller before requesting a repair.

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 to be prepared and signed.

Additionally, the lender will let your buyer know how much money they need to wire to the title company. Once the buyer’s and lender’s funds are wired to the title company’s account, transferring ownership of the home from the seller to your buyer will be one step closer.

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. Moving Checklist

Give your buyer a moving checklist to provide additional value as a real estate agent. Items on the moving checklist include activities 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 moving checklist and edit it to suit your requirements:

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.

7. Final Walk-through

When you do the final walk-through, you will be just a few steps away from handing your buyer the keys to their new house. 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 and any repairs the seller agreed to make in response to inspection findings or as specified in the purchase contingencies have been made.

Make sure the house is ready for your clients by 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, open each cabinet, test the fire alarms, and turn on the heat and air conditioning. 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.

8. 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.

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 homeowners 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 homeowners insurance).
• “Truth in lending” statement: 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.

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, by maintaining deadlines, professionalism, and preparing your buyer throughout the process, you can guarantee a positive experience.

Giving your clients a gift to congratulate them on their purchase will leave a lasting impression—making them more likely to sing your praises and refer friends and family who want to purchase a home. If you’re having trouble deciding which closing gift to give your buyers, use a service like EvaBot to send a personalized gift from as low as $20 to $1,000—right to your client’s doorstep. Eva will chat with your buyer to evaluate their preferences before sending them a custom gift with your personal branding.

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1. Name the Players of the Transaction

Make a spreadsheet listing all parties involved in the transaction, along with their contact details, in case one or both parties have to be contacted at any point during the process. This spreadsheet should be sent to the buyer’s and seller’s agents to ensure that both sides are kept in the loop and are aware of all participants in the game.

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 that 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): Realtors 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 (i.e., 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 good policy to secure insurance on the home

2. Create a Transaction Timeline

Like with the buyer, at the beginning of an escrow, you or your transaction coordinator must ensure that all parties have a timeline of important dates and deadlines. These benchmarks must be adhered to so that the deal goes smoothly.

Confirm that everyone has read the transaction timeline and agrees with it. Remember that your seller might have bought another house, making the deadline even more critical. A domino effect happens when something disrupts the process of numerous parties moving, so being cognizant of all timelines is crucial.

We are always hopeful that all parties will proceed positively toward a smooth closing, but if one of the steps gets interrupted, it can affect the whole deal. Communicating transaction timeline details and having a backup plan for your seller is a way to ensure that your closing is not delayed.

3. Review Inspections & Repair Requests

The contract’s terms were negotiated when you first presented the offer to your seller. You might have to renegotiate conditions if the buyer decides to conduct complete inspections and there are findings. When you take the listing, it is always important to set the seller’s expectations upfront.

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. Additionally, you should have been proactive while taking the listing to identify and calculate the potential cost of condition, safety, health, or code violation repairs that could be requested.

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 so there will be no delay going to the closing table. As an agent, you can help facilitate this by working with your client to schedule a consultation and time frame for the work to be completed and for any follow-up inspections (if required).

4. Closing Documents

The title company or attorney will email or physically send your seller documents during the transaction. Your responsibility includes ensuring that your seller submits these documents on time. These documents may contain 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).

Once the buyer’s closing documents are ready to be signed, arrange a signing appointment for your seller. Make sure to have the title company send 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 additional concerns.

Since the documents will be notarized, inform your seller that they must present valid identification, such as a current driver’s license or passport, upon signing. 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. Moving Checklist

To provide additional value, give your seller a moving checklist. This seller checklist for closing should include phone numbers for services the seller will need to cancel on their home, such as water, garbage, and electricity. To help with your moving, we created a downloadable moving checklist you can use and edit.

With the closing timeline, sellers can schedule the turn-off or transfer of ownership of services at their residence after the buyer’s final walk-through. It is important to note that if services are turned off before the walk-through, the buyers will not be able to confirm certain items are working, like electricity, water, or gas.

Your seller should also prepare and contact a moving company to remove their belongings 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 these resources, you are supplying them with a beginning-to-end transaction that will have clients singing your praises to others, which in turn will become client referrals in the future.

6. Buyer’s Final Walk-through

Even though the seller is typically not present for the final walk-through, you should be the seller’s representative to ensure everything is going according to plan. Tell your seller that the buyer and their agency must tour the property one to three days before closing.

The buyer 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 to 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

Your seller has reached the end of the process, and the home is closed. Ownership has transferred, and the buyer is going to be taking possession. Your seller should ensure the house is clean and ready for the new buyers. The keys, garage door remote controls, and mail key should be placed in a kitchen drawer or on the kitchen counter. Your seller should also leave instruction manuals for equipment, sprinkler or irrigation systems, and appliances on the counter.

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.

Remember 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.

Most importantly, this is a fantastic time to celebrate with your seller 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 rid of this home, by maintaining deadlines, professionalism, and preparing your seller throughout the process, you can guarantee a positive experience.

Giving your clients a gift to congratulate them on selling their homes will help you to generate more leads and leave a lasting impression. Use EvaBot to send a personalized gift based on your budget, ranging from $20 to $1,000. Eva will chat with your seller to find out what they like before sending them a custom gift with your personal branding. Check out its website to learn more:

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