Does Buyer or Seller Sign First at Closing?

In real estate, closing marks the final stage of a property transaction, where ownership formally transfers from the seller to the buyer. This event brings together all parties to finalize financial and legal obligations and ensure all conditions of the purchase agreement are met.

The Closing Signature Process

At a real estate closing, there is no universal rule for whether the buyer or seller signs first. Both parties often sign concurrently, or the closing agent may orchestrate the order for efficiency. The practical flow of documents often leads to the buyer signing many financing-related papers before the seller completes their ownership transfer documents.

The closing agent, typically an attorney or a title company representative, manages the signing process. This agent ensures that all necessary documents are properly executed by the correct individuals. Buyers and sellers are generally present, or represented, at the meeting. The buyer usually has a larger volume of documents to sign, primarily due to the financing aspects of the purchase.

The buyer’s signatures often pertain to their commitment to repay a loan and secure the property as collateral. The seller’s primary responsibility involves signing documents that legally transfer the property title to the new owner. This coordinated effort ensures that all legal requirements for the property transfer and financial agreements are satisfied.

Key Documents Signed at Closing

At closing, both buyers and sellers sign various documents, each serving a distinct purpose in finalizing the transaction.

Buyers typically sign the Closing Disclosure (CD), which provides a detailed breakdown of all loan terms, fees, and closing costs. They also execute a Promissory Note, a legal promise to repay the mortgage loan, outlining the loan amount, interest rate, and repayment terms. Buyers also sign a Mortgage or Deed of Trust, which secures the property as collateral for the loan and is recorded in public records.

For sellers, the primary document is the Deed, which formally transfers ownership of the property to the buyer. Sellers may also sign an Affidavit of Title, a legal statement affirming clear ownership and absence of undisclosed liens or claims. If personal property is included in the sale, a Bill of Sale may be signed to transfer its ownership. Other documents for sellers can include a settlement statement detailing financial transactions and a Certificate of Non-Foreign Status.

Scenarios and Practicalities

While many closings involve both parties physically present, variations exist. In a mail-away closing, documents are sent to parties who cannot attend in person, allowing them to sign before a notary and return the paperwork. This option requires sufficient notice and coordination with the closing agent. Some states, however, require an attorney to be physically present for all signings, which may limit mail-away options.

Another arrangement involves using a Power of Attorney (POA), which grants a designated individual the legal authority to sign documents on behalf of the buyer or seller. This is particularly useful if a party is out of state or otherwise unable to attend. The POA must be prepared in advance and often requires notarization and lender approval.

A notary public verifies identities and witnesses signatures to ensure the legality and authenticity of the documents. All parties are required to present valid government-issued photo identification to the notary. After all documents are signed, copies are provided to both the buyer and the seller.