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Maryland real estate: The lowdown on the closing day

| Aug 27, 2018 | Real Estate |

People who have made an offer on a home that has been accepted look forward to one significant date — the day on which the deal closes. Excitement aside regarding a first real estate deal, there are a few things that happen on closing of which some first-time home buyers in Maryland may be unaware. Not only does the buyer get the keys to the home on this day, but other important things take place, too. One of those includes securing title insurance.

Title insurance is necessary in case there is a dispute about the title. For instance if prior owners defaulted on their taxes, the new owner could be on the hook for them. Title insurance offers protection against these types issues. There are two types — one for lenders and one for owners. Owners aren’t obligated to purchase this insurance, but it can save the day if needed, and title issues do rear their ugly heads up to 40 percent of the time in all deals.

On the actual closing day, a lot of what transpires happens electronically. Downpayments and closing costs are actually paid on the closing day. Buyers who are using wire transfers should start the process a few days prior to closing. But before wiring money, buyers are urged to call an independently verified number off a sales contract or from the internet before sending money rather than rely on a number in an email. Hackers have taken advantage of buyers by having a buyer send money into their bank accounts.

Closing day can be as complicated as it is exciting. Buyers or sellers who have questions about closing a real estate deal may have their queries answered by a Maryland lawyer who is knowledgeable about real estate laws. When purchasers and sellers know what to expect when and from whom, it may make the real estate deal much more pleasant.