Selling Real Estate?
Selling real estate can feel daunting and overwhelming — even if it marks an exciting milestones in life. At Legacy Title Agency, we’re here to guide you through every step of the process so you feel confident, informed, and supported. Whether this is your first home sale or your 50th investment property, this guide will walk you through what to expect from start to finish as we prepare to insure and close on your property.
STAGE 1
Getting Started
Let us know that you want Legacy to handle your closing! There are usually NO upfront costs for a closing with us, so it is easy to get started!
The buyer will submit their Earnest Money Deposit. If Legacy is holding the Earnest Money Deposit, check our information on how to do this here.
Send a copy of your signed purchase agreement to Legacy (feel free to submit it here). After Legacy receives your purchase agreement and the names of the parties involved, we will complete our research by reviewing public records to confirm who owns the property and what liens may apply.
This information is used to prepare a Commitment of Title Insurance. This is a standard document that shows the results of the investigation and creates a list of things that need to happen before the property can be insured and closed.
We will send you our Title Commitment along with an easy to follow “to-do list” showing you everything that needs to happen before the closing.
Estimated timing: 1-3 days
Action Items for Sellers:
Make sure Legacy has a copy of your Purchase Agreement
STAGE 2
Closing Preparation
This stage starts when you get your “To Do” list from us! Usually during Stage 1, our research uncovers a lot of information - such as mortgages you may have taken out against the property, tax bills, municipals invoices, and it may uncover some questions of ownership.
We will be gathering documents and information from all parties to answer any questions we had after our research and make sure all of the seller and previous owner’s interests are conveyed to the buyer. Common things we are requesting include:
Finalizing the spelling of buyer and seller names for legal documents
Requesting Authorizations from sellers to get payoffs for their mortgages or other liens against the property. Then we reach out to the lien holders to ask for formal payoff letters so we know how much money is required to pay off and discharge those liens.
Signing Authority for any entities involved, such as Companies, Trusts, or Estates. For example, if one of these entities owns the property, we will need legal documentation showing us who can sign on behalf of that entity.
During this stage we will likely ask to verify your identify through out third party ID verification software. The common platforms we use are ClosingLock and Proof. To start this process we will need your basic information (Legal name, email address and phone number). We will create a profile for you and then you will receive a text message and email link. We will also email you to let you know we created this profile for you so you know to be on the lookout for the links! Follow one of those links to complete your ID verification. You will, at minimum, need to be able to answer some personal questions, take a live selfie and take a live photo of your government issued ID. This is technology - and we know that technology isn’t always perfect! So we ask that you perform this ID verification as soon as possible so we have time to troubleshoot any technology issues BEFORE the closing. Want to know more about this process, check out our video here.
As we receive information or documents, we review that information to ensure it contains what is needed for us to move towards closing. Occasionally we may need to coordinate with attorneys or outside parties to have legal documents created or modified so that the requirements are met.
Preliminary Statements may be exchanged between parties during this time, but know that these figures are VERY preliminary at this stage.
Once we have EVERYTHING we need, and the other parties, such as the lender, have everything they need as well, we call this CLEAR TO CLOSE - and we get to schedule our closing!
Estimated timing: 15-30+ days
Action Items for Sellers:
Provide any requested information
Check your ID - make sure you will be able to bring a VALID government issued photo ID to your closing (check the expiration date and make sure it will still be valid for your closing).
Make sure you have your Social Security Number or Tax ID Number ready for the closing. You will need to have the correct Tax ID Number or SSN for the actual property owner at the closing. Failure to provide this information accurately may result in penalties from the IRS.
Start thinking about how you are going to receive your proceeds at closing and make sure you have a bank account in the name of the actual owner of the property.
You may receive a check or wire. There is a $35 fee for a wire and we require that your wire instructions are provided to us either in person at closing, or via our secure portal. There is no fee for a check.
The check or wire will be made payable to the seller in title. If John’s Rental Property, LLC owns the property, then the closing proceeds will only be made payable to John’s Rental Property, LLC - we are not able to write a check or wire to John (even if he is the sole owner). This means that John will need to make sure he has a bank account opened BEFORE closing in the name of John’s Rental Property, LLC. This same rule applies for trusts, estates and other entities.
Please note that usually anyone acting as a Power of Attorney or other type of representative cannot elect to have the funds made payable to themselves. The closing proceeds will still be made payable to the actual property owner.
Want more info on what you need to bring to your closing, check out our video here.
Scheduling the Closing
STAGE 3
Once we have all the information we need for the closing, we can then schedule our closing!
When we schedule a closing, the most important thing we do is pick a date for the closing to occur. This date is the anchor for calculating all fees, payoffs, taxes, and invoices.
Which means the next step is for us to recalculate all of the fees, invoices, etc based on our closing date. Sometimes we may have to re-order payoffs for mortgages or liens because the payoffs we received during our Closing Prep Stage are now out of date. This process usually takes much less time since we are just ordering an update.
Once we have all of our updated fees and payoffs calculated for our closing date we can begin to prepare out closings documents - this includes our closing statements, federal and state required documents and so on.
Once Legacy has completed their own statements, they work with the other parties such as the lender and if the buyer chose a different title company, Legacy will reach out to balance our final fees with them too.
After Legacy, the Lender (if applicable), and the Buyer’s Title Co (if applicable) have all exchanged fees, documents, and balanced our statements together, the final numbers and final documents will be released to the Realtors, Buyers, and Sellers. Legacy will let you know exactly how much money you will get after the closing.
Review your closing documents and statements for accuracy and understanding - let us know if you have any questions.
Estimated timing: 2-5 days
Action Items for Sellers:
Review your closing documents. You may be required to bring the originals of documents you previously provided electronically. These documents MUST be brought to your closing or the closing may not be completed. Please carefully review your closing cover sheet for any specific items you are being requested to bring.
Check your ID - make sure you will be able to bring a VALID government issued photo ID to your closing (check the expiration date and make sure it will still be valid for your closing).
Make sure you have your Social Security Number or Tax ID Number ready for the closing. You will need to have the correct Tax ID Number or SSN for the actual property owner at the closing. Failure to provide this information accurately may result in penalties from the IRS.
Know how you are going to receive your proceeds at closing and make sure you have a bank account in the name of the actual owner of the property.
You may receive a check or wire. There is a $35 fee for a wire and we require that your wire instructions are provided to us either in person at closing, or via our secure portal. There is no fee for a check.
The check or wire will be made payable to the seller in title. If John’s Rental Property, LLC owns the property, then the closing proceeds will only be made payable to John’s Rental Property, LLC - we are not able to write a check or wire to John (even if he is the sole owner). This means that John will need to make sure he has a bank account opened BEFORE closing in the name of John’s Rental Property, LLC. This same rule applies for trusts, estates and other entities.
Please note that usually anyone acting as a Power of Attorney or other type of representative cannot elect to have the funds made payable to themselves. The closing proceeds will still be made payable to the actual property owner.
Be ready to bring your information to the closing such as name, phone, email, address and a forwarding address to be used by Legacy and your Lender for up to 90 days after the closing.
Want more info on what you need to bring to your closing, check out our video here.
STAGE 4
The Closing
The Buyer’s Title Company, which may or may not be Legacy, will be collecting all of the funds from the buyer, and the Lender - and anyone else who needs to pay something for the closing. This title company is usually the party who makes sure everyone is paid according to the closing statements. They will be collecting all of the money from the buyer and lender, and will be writing checks or sending wires to all the appropriate parties - for example, if the seller has a mortgage on the property, they will likely be wiring the payoff funds to that lender to payoff the seller’s mortgage.
If Legacy is NOT representing the buyer too, we will work closely with the title company they chose to make sure your closing goes smoothly and to ensure you get your closing funds promptly!
Our “Closer” (this is a fancy word for our closing pro) will arrive to your closing appointment with a copy of all of the documents (from everyone including your lender) that you need to sign.
Our Closer will ask to see your ID, and they will make a copy of your ID for our records.
Once your identity has been verified, our Closer will walk you through all of the documents to sign.
Signed documents will be uploaded to the Legacy Headquarters for review and sorting. Legacy will also be collecting the signed buyer documents as well
Once Legacy has received and reviewed your signed documents, the buyer’s signed documents, and all of the funds from you and the lender have been received by the buyer’s title company, your closing will officially be COMPLETE!
Estimated timing: 30 mins to 1 hour
Action Items for Sellers:
BRING your ID - make sure you will be able to bring a VALID government issued photo ID to your closing (check the expiration date and make sure it will still be valid for your closing)
Bring your wire instructions if you want a wire - otherwise you can provide your wire instructions through our secure online portal. We will not accept wire instructions via email or over the phone.
Attend your scheduled closing appointment!
STAGE 5
After the Closing
After Legacy receives all of the above items, we will send you an email confirming your closing is officially COMPLETE and provide you with a copy of all of the relevant signed documents.
Legacy will also send checks or wires so the seller gets their proceeds, liens are paid off, etc.
You - the seller - have a few items to complete:
File your Request to Rescind Principal Residence Exemption - If you used this property as your one principal residence to qualify for the Homestead Property Tax Exemption (this lowered your property tax bill), you will bring this form in to the Assessor’s office for the property you sold. If you bought a new home, now you can also file a Principal Residence Exemption form for you new home.
Water Escrows - if Legacy is holding a water escrow for you, the seller, be sure to call the water department and ask for a “final water bill.” Tell the water department the closing date (or your last day of Occupancy if you stayed in the property after closing). Once you get that final water bill, email it to us at escrows@legacyclosings.com .
Occupancy, Security Deposit, or other Escrows - if Legacy is holding an escrow for you and the buyer, be sure to bring THIS form with you when you exchange keys or otherwise so both you and the buyers can fill this document out and sign it and those escrow funds can be disbursed. Once it is fully executed, email it to escrows@legacyclosings.com .
Keep you closing documents in a safe place, you may need to reference your 1099s
Estimated timing: 45+ days