Law Office James Palmisano
417 Barre Street
Montpelier, Vermont 05602
Phone: (800) 585-3169
Phone: (802) 229-4001
Fax: (802) 229-2733

What exactly is a closing?

The closing is when the seller actually transfers title to the buyer. The buyer signs all loan papers and makes the down payment for the property. The closing usually takes place either at the lender’s office or an attorney’s office. Once your loan is approved, you and your realtor will coordinate a closing date and time with the lender, seller and your attorney. The closing agent should provide you with exact closing figures before your closing. Your attorney may be able to obtain final closing figures from the lender a day or so before the closing. The most important number is the total amount of money that you have to bring with you to the closing. You will be directed to bring it in a certified check payable to either the lender or the closing attorney’s trust account.

Some of the closing costs to expect include the credit report, appraisal, title search, title insurance, Vt. transfer tax, town recording fees, and any fees your lender is charging you for the mortgage loan.The closing can be intimidating, especially if it’s your first time. Knowledge equals peace-of-mind, so here is a list of some of the documents typically signed at the closing: Promissory note, mortgage deed, settlement statement, transfer tax return, smoke detector certificate, and truth-in-lending statement.

Property taxes will be apportioned between you and the seller. If the timing of the closing is such that you will own the property for part of the time for which the seller has already paid taxes, you will reimburse the seller for a portion of the taxes he or she has paid. If you will pay taxes for part of the time the seller owned the property, the seller will reimburse you. If the property has oil heat, there is usually an adjustment, by which you pay the seller for the amount of oil in the tank. In order to do this, the seller will provide a reading of the tank and a recent oil bill. Another way this is done is for the seller to have the oil company top off the tank just before the closing and bring the bill to the closing. It is necessary to know the size of the tank to calculate this adjustment.