Home Seller's Guide to Real Estate Closings

Selling your home is exciting, but the closing process can feel confusing if you've never been through it as a seller. Unlike buyers who sign stacks of loan documents, sellers typically have fewer papers to sign - but what you sign is just as important.

I'm Christian Nichols, a mobile notary and NNA Certified Signing Agent serving Western Pennsylvania. I've helped hundreds of sellers through the closing process. Let me explain exactly what to expect when you sell your home.

Seller Closing vs. Buyer Closing: What's Different?

As a seller, your closing experience is very different from the buyer's:

• Fewer documents - You'll typically sign 10-20 pages, not 100+
• Shorter appointment - Usually 20-30 minutes instead of 90 minutes
• You receive money - Instead of bringing funds, you get proceeds from the sale
• Transfer of ownership - You're giving the property to someone else
• Paying off your mortgage - If you have one, it's paid from sale proceeds

Many sellers prefer a mobile notary signing at their home for convenience, especially during the hectic moving process.

Before Closing: What to Prepare

Required Items for Sellers

• Government-issued photo ID - Driver's license or passport for all sellers on the deed
• Keys to the property - All sets: house, garage, shed, mailbox
• Garage door openers and remotes - For gates, security systems, etc.
• Manuals and warranties - For appliances, HVAC, roof, etc. staying with home
• Receipts for agreed repairs - If you made repairs as part of the sale agreement

Review Your Settlement Statement

Before closing, you'll receive a settlement statement (sometimes called HUD-1 or closing statement) showing:

• Sale price of the home
• Payoff amount for your existing mortgage
• Real estate agent commissions
• Title insurance and closing costs
• Prorated property taxes and HOA fees
• Your net proceeds - what you'll actually receive

Review this carefully. Your net proceeds might be less than you expected due to fees, prorations, and payoffs.

Key Documents You'll Sign as a Seller

1. Deed (Most Important)

This is the document that transfers ownership of the property from you to the buyer. In Pennsylvania, this is usually a "Warranty Deed" or "Special Warranty Deed." By signing, you're:

• Transferring legal title to the buyer
• Guaranteeing you have the right to sell the property
• Warranting the property is free of liens (except those disclosed)

This document will be notarized and recorded with the county. Once recorded, you no longer own the property.

2. Settlement Statement / Closing Disclosure

This itemizes all the money changing hands: sale price, payoffs, fees, and your net proceeds. You'll sign acknowledging you've reviewed and agree with the numbers.

3. Affidavit of Title

You swear under oath that:

• You own the property
• There are no undisclosed liens or claims
• No one else has rights to the property
• There are no pending legal actions affecting the property
• You haven't made recent improvements with unpaid contractors

This protects the buyer and title company. Be truthful - lying on an affidavit is perjury.

4. FIRPTA Certificate (Non-Foreign Seller Affidavit)

This certifies you're a US citizen or resident, not a foreign seller. If you are foreign, the IRS requires withholding a portion of the sale price for taxes.

5. Lead-Based Paint Disclosure (Pre-1978 Homes)

If your home was built before 1978, you must disclose any knowledge of lead-based paint. This is a federal requirement.

6. Bill of Sale (If Applicable)

If you're leaving personal property with the home (furniture, appliances not built-in, etc.), you'll sign a bill of sale transferring those items.

7. Payoff Authorization

If you have a mortgage, you authorize the title company to pay it off from the sale proceeds and satisfy the lien.

The Seller Signing Appointment

Step 1: Arrival and ID Verification (5 minutes)

I'll verify photo IDs for all sellers listed on the deed. If you're married and on title together, both spouses must be present even if only one is on the mortgage.

Step 2: Document Review (10-15 minutes)

I'll walk you through each document, explaining what it is and what you're agreeing to. Pay special attention to:

• Correct property address and legal description
• Your name spelled correctly as it appears on title
• Sale price and net proceeds amounts
• Any credits or adjustments

Step 3: Signing and Notarization (10 minutes)

You'll sign where indicated. I'll notarize the deed and any other documents requiring notarization. The entire process usually takes 20-30 minutes.

Step 4: Key Handoff

You'll give me or the title company all keys, remotes, and access devices. These will be delivered to the buyer once funding is confirmed.

Common Seller Questions

"When do I get my money?"

You'll typically receive proceeds via wire transfer or check within 24-48 hours after closing, once the deed is recorded and the buyer's funds have cleared. Ask your title company for their specific timeline.

"Do I have to be present at closing?"

Yes, all sellers on the deed must sign in person with a notary present (or use a Power of Attorney if someone can't attend). You cannot mail or email signed documents.

"What if my spouse is on the deed but can't attend?"

They can grant you Power of Attorney to sign on their behalf, but this must be done in advance with proper legal paperwork. Contact the title company immediately if this is your situation.

"Can I still back out at closing?"

Technically yes, but you may forfeit the buyer's earnest money deposit and face potential legal action for breach of contract. If you have concerns, address them before the closing appointment.

"What if there's an error in the documents?"

Point it out immediately. Small errors can often be fixed quickly. Major issues may require new documents and could delay closing.

Understanding Your Net Proceeds

Many sellers are surprised their proceeds are less than expected. Here's what gets deducted from the sale price:

Typical Deductions

• Mortgage payoff - Your remaining loan balance plus any prepayment penalties
• Real estate commissions - Typically 5-6% of sale price (split between agents)
• Title insurance - In PA, sellers typically pay for buyer's title policy
• Transfer taxes - State and local taxes on property transfers (1-2% of sale price)
• Prorated property taxes - You pay for your portion of the tax year
• HOA fees - Prorated if you have HOA dues
• Recording fees - For recording satisfaction of your mortgage
• Attorney fees - If you hired a real estate attorney
• Agreed repairs or credits - Any credits given to buyer from negotiations

Tips for a Smooth Seller Closing

• Review numbers in advance - Don't see your settlement statement for the first time at signing
• Verify payoff amounts - Contact your lender to confirm the exact payoff (changes daily due to interest)
• Gather all keys early - Find every key, remote, and code before closing day
• Complete agreed repairs - Bring receipts to show work was done
• Schedule utilities cutoff - But not until after buyer's final walkthrough
• Forward your mail - Set up mail forwarding with USPS before moving
• Bring your ID - Valid photo ID for every seller on the deed
• Clear the property - Remove all belongings unless specifically agreed to leave them

After Signing: What Happens Next

Once you sign the closing documents:

1. I return documents to the title company
2. Title company verifies everything is in order
3. Buyer completes their signing (if separate appointments)
4. Buyer's lender funds the loan
5. Title company records the deed with the county
6. Your mortgage is paid off and lien is satisfied
7. You receive your proceeds via wire or check
8. Buyer receives keys and takes possession

This typically takes 24-48 hours in Pennsylvania. The sale is not final until the deed is recorded.

Tax Considerations for Sellers

Consult a tax professional, but here are common tax issues:

• Capital gains exclusion - Up to $250,000 ($500,000 married) may be tax-free if it was your primary residence for 2 of the last 5 years
• 1099-S reporting - Title company reports your sale to the IRS
• Estimated taxes - You may need to pay quarterly estimates on taxable gains
• Moving expenses - Generally not deductible unless you're military