What Happens on Closing Day? 🤔

While everyone has a basic idea of what happens on Closing Day, it's still a bit of a mystery if you haven't done it before, or if it's been a while since you bought a home. Here's what to expect on the big day ... and must-dos before you get to the closing table.

What is "Closing"?

Closing Day is the last step that finalizes a real estate sale and when the home officially changes hands. Buyers, sellers, and their agents complete paperwork, transfer funds, and make the sale official. While this is the time to final-check numbers (like taxes, commissions, and credits or debits) it is not the time to renegotiate terms. The deal is done, closing just finalizes everything for buyer, seller, and the State.

Who Is In Attendance? Where Do We Meet?

In addition to the buyer and seller, a title representative (sometimes called an Escrow Officer), and representing real estate agents are in attendance. While Closing is always handled by the same title company, for convenience and privacy, it is common today for buyers and sellers to close at different times, and sometimes even at different branch offices. At least three days before closing, buyer and seller should confirm their appointment time so the Escrow Officer can reserve rooms, plan ahead, and finalize settlement statements.

What Happens At The Closing Table?

The time between signing a purchase contract and reaching the closing table usually takes anywhere from 15 days for cash sales, to about month for financed sales. For buyers, Closing is the day they officially take ownership of the property and receive the keys. For sellers, Closing day is when the sale becomes final and they receive proceeds.

What Sellers Should Expect

Sellers typically sign a bill of sale, deed, closing statement, certificate of title, and may also sign a mortgage payoff agreement. Sellers usually receive their proceeds within 24 hours via wire transfer, and need to provide their ABA routing number and account number to the Escrow Officer, which can be done with a voided check. After closing, the title company sends the notarized deed to the County for final recording, which happens a few days later.

What Buyers Should Expect

Buyers with a mortgage will have a pile of lender paperwork to sign, including the loan estimate, closing disclosure, escrow statement, mortgage note, and deed of trust. For new homes, a certificate of occupancy is included.

Buyers must arrive to Closing with “good funds” to cover their closing costs and total cash-to-close. These funds are usually delivered via wire transfer from their bank to the title company. Ideally, the lender has already wired funds several hours before, so everything can move smoothly.

Items to Bring With You ...

All parties should bring a valid photo ID (two forms is best) and be accompanied by professional representation (their agent or attorney). Sellers should bring their banking information, any required documentation confirming completion of inspection-related repairs, a key for the buyer, and the lockbox to return to their agent. If a rent-back agreement is in place, both buyer and seller should exchange contact information to allow for communication through possession.

"Must-Dos" Before Arriving at the Title Company to Close the Deal

Sellers: A Final Moving Checklist

On the day of Closing, the seller should contact the gas and electric company to report the sale. The utility will take a final meter reading and may ask the seller to provide the numbers. The seller should also call their home insurance agent to end coverage and request any return premium. If cable, internet, or other services are active at the property, it’s important to notify those providers as well. In Colorado, water and sewer transfers are handled by the title company, which will escrow the final bill out of seller’s proceeds and refund any remaining balance after Closing. Don’t forget to update your new address with the post office, voter registration, and motor vehicle departments.

You can find a handy checklist to help with all these tasks right here. :)

Buyers: Final Walkthrough + Verification of Condition

In Colorado, buyers have the right to conduct a final walk-through to confirm that the property’s condition complies with the contract. Buyers should schedule this walk-through as close to Closing as possible, ideally no more than 24 hours before.

Because conditions can change between inspection and Closing, buyers must verify that agreed-upon repairs have been completed. The final walk-through also allows buyers to confirm that the property meets contract requirements. During the walkthrough, check for any new urgent issues—such as frozen pipes or water damage—and ensure that all seller personal property has been removed.

NOTE: The buyer is solely responsible for confirming that the property is in satisfactory condition prior to Closing. This responsibility cannot be delegated to their agent, even though the agent is present for it. If the buyer cannot attend a final walkthrough in person, they should appoint an authorized personal representative to conduct the walk-through for them, and use video calling to remain actively involved in this critical step.

Partner with an Expert on Your Next Move

Michelle Schwinghammer (colloquially known as "Schwing") is a real estate agent, broker associate with West + Main Homes, and the local expert behind SCHWINGSTATE LLC. Operating across the Denver Metropolitan area, Michelle specializes in ensuring her clients are fully educated, protected, and empowered.

Understanding real estate doesn’t have to be confusing. I break things down for my clients and stand by their side every step of the way, so they can buy and sell with confidence. Call me, let's talk about your goals.