Closing Day Preparation Guide for Home Sellers in California

Congratulations! You’re almost at the finish line. Closing day is the final step in the process of selling your home. It can feel like a whirlwind of paperwork, but with the right preparation, you’ll sail through it smoothly. Here’s a step-by-step guide to help you know exactly what to expect and how to be ready for the big day.

Step 1: Review the Closing Disclosure

Before closing day, you’ll receive a Closing Disclosure from the title company or escrow officer. This document provides a detailed breakdown of the costs associated with selling your home, such as:

Payoff Amounts for Any Mortgages
Real Estate Agent Commissions
Title Fees
Outstanding Property Taxes or Liens

Review this document carefully, and if anything seems unclear or incorrect, contact your real estate agent or escrow officer right away to resolve any discrepancies.

Step 2: Gather Required Documents

On closing day, there are several key documents you’ll need to have on hand. Make sure to gather the following in advance:

Government-issued ID (driver’s license, passport, etc.)
Any documents related to the payoff of your mortgage
Keys, garage door openers, or any access codes for the property
Final utility bills or transfer documents for gas, water, electricity, etc.

Your escrow officer will let you know if any additional paperwork is required, but having these items ready will speed up the process.

Step 3: Understand Your Closing Costs

As the seller, you’ll have certain financial obligations at closing. Typically, these include:

Agent commissions (typically 5-6% of the sale price, split between the buyer and seller agents)
Title insurance fees (paid by the seller in most California transactions)
Escrow fees
Transfer taxes (depending on your city or county)
Any outstanding liens, property taxes, or HOA fees

Be sure to have a clear understanding of these costs and ensure they are accurately reflected in your Closing Disclosure.

Step 4: Sign the Closing Documents

On closing day, you’ll sign a number of important documents to finalize the sale. These documents include:

The Deed: This transfers ownership of your home to the buyer.
Closing Statement: This outlines all the financial details of the sale.
Affidavit of Title: A document that confirms there are no outstanding claims on the property, such as unpaid taxes or contractor liens.
Tax Forms: These may include documents related to capital gains taxes if applicable.

Your escrow officer will walk you through each document, explaining what you’re signing and answering any questions you may have. Once everything is signed, the deal is nearly complete!

Step 5: Coordinate with Your Escrow Officer

California is an escrow state, meaning that escrow acts as the neutral third party facilitating the closing process. Your escrow officer plays a key role in the transaction, overseeing the exchange of funds and the title transfer. They’ll also ensure that all legal documents are properly filed and that the buyer’s loan is processed.

Before closing day, confirm the location and time of your signing appointment, and ensure you know whether the signing will be in person or remote (some closings may now be conducted virtually).

Step 6: Plan for Final Walkthrough

In California, the buyer is entitled to a final walkthrough of the property shortly before closing to confirm that the home is in the agreed-upon condition. Be sure to leave the home in broom-clean condition, which means:

Remove all personal belongings
Clean the property, including floors, counters, and bathrooms
Ensure all agreed-upon repairs have been completed
Check for any appliances or fixtures that are staying with the home

It’s best to complete this cleanup a day or two before the final walkthrough to avoid any last-minute stress.

Step 7: Receiving the Funds

Once all documents are signed, the buyer’s funds are wired to escrow, and the title transfer is recorded with the county, the proceeds from the sale will be released to you. The process may take a few hours to a day, depending on when the county records the sale.

You can choose to receive your funds via a wire transfer or cashier’s check, depending on what you’ve arranged with your escrow officer. Be prepared to verify bank account information for wire transfers to avoid delays or potential fraud.

Step 8: Hand Over the Keys

Once the deal is officially closed and the title has transferred, you’ll hand over the keys and any remaining items such as garage door openers, remotes, or codes to the buyer. This is the final step in the process and signifies the completion of your sale.

Closing Day Checklist

Final Thoughts

Closing on a home can feel overwhelming, but with the right preparation, it’s a straightforward process. By understanding the steps involved, being proactive in gathering documents, and coordinating with your escrow officer, you can ensure a smooth, successful closing day.

If you have any questions or need assistance along the way, don’t hesitate to reach out to your real estate agent for guidance. You’ve made it this far—now it’s time to celebrate the successful sale of your home!

This guide should give your home sellers a clear and confident path through the closing process! Let me know if you’d like to adjust anything.

Closing Day Preparation Guide for Home Sellers in California