Process of Closing on All Cash
Hi We are selling our brownstone and the buyers are paying all cash. I’ve never done a sale that hasn’t involved a buyer’s bank. I am unfamiliar with the steps to closing (i’ll certainly ask our attorney but you guys are always helpful). We will be paying off our mortgage…do we contact our bank to…
Hi
We are selling our brownstone and the buyers are paying all cash. I’ve never done a sale that hasn’t involved a buyer’s bank.
I am unfamiliar with the steps to closing (i’ll certainly ask our attorney but you guys are always helpful).
We will be paying off our mortgage…do we contact our bank to tell them this? Are they present at closing? What other things are we responsible for vis-a-vis paperwork, other than what has been agreed upon in the contract?
Thanks for any and all info!
These questions are best answered by the attorneys involved with the deal or the title company that is handling the deal. Or your agent that is representing you. A payoff statement will be ordered from your mortgage company. That payoff will come out of your proceeds at settlement.
My impression [based on my vast experience of closing on one house 35 years ago] is that the big difference is that there’s no bank providing the buyer financing that will provide a venue to bring all the necessary parties together for the closing. I’m sure this is something that the buyers’ and sellers’ lawyers can work out. All cash sales HAVE been done before, after all.
Your attorney will advise their attorney who to have cashiers checks out to. One of those checks will be for your bank to settle the mortgage. The bank won’t lift its mortgage before it’s paid off, and you can’t transfer title with the mortgage in place. Your attorney will handle everything.
It ends up being “all cash” at every closing so I can’t see it being different from a purchase that’s being financed. Your attorney should be able to resolve those questions. Good Luck.