A real estate closing is the final step in a property transaction where legal ownership is transferred from the seller to the buyer. In Pennsylvania, this involves signing documents, disbursing funds, and recording the deed. Every detail matters — a small oversight can lead to costly complications.
Understanding Pennsylvania Closings
Pennsylvania is a "title theory" state, meaning legal title transfers to the buyer at closing, but the lender holds title as security until the mortgage is repaid. Local customs vary by county: some use settlement agents, while others involve attorneys. Understanding your local process is critical.
Key Steps in the Closing Process
Title Search and Insurance
A title search verifies that the seller has legal ownership and that the property is free from liens or claims. Title insurance protects buyers and lenders against future title disputes. A title company or attorney typically handles this process, ensuring all prior mortgages, judgments, and unpaid taxes are cleared.
Review the Settlement Statement
Before closing, both parties review the Closing Disclosure, which details every financial aspect of the transaction — from earnest money to prorated taxes.
Key Documents
The primary documents in a Pennsylvania closing include the deed (transfers ownership), the mortgage and promissory note (outlines loan terms), and the settlement statement (details closing costs).
Recording the Deed
After signing, the deed is recorded with the county recorder of deeds. Once recorded and funds are disbursed, the transaction is complete.
Why Choose an Attorney for Your Closing?
Relying solely on a title company without an attorney may leave legal blind spots. Attorneys provide comprehensive protection, especially in transactions involving estates, foreclosures, or commercial properties. An experienced attorney will review the agreement of sale for unfavorable clauses, clarify contingencies, assist with negotiating repairs or credits, and ensure all documents comply with state and local requirements.
Common Mistakes to Avoid
Not reviewing documents thoroughly before signing, skipping the title search or title insurance, failing to understand prorated taxes and closing costs, and not having legal representation for complex transactions.
Ament Law Group has years of experience navigating real estate closings throughout Western Pennsylvania. Call us at (724) 733-3500 for experienced legal support.
Need Help with Your Estate?
At Ament Law Group, P.C., we help Pennsylvania families protect their wealth and plan for the future. Whether you need a trust, will, or probate administration assistance, our team is here to guide you every step of the way.
Call us today at (724) 733-3500 to schedule your consultation.