What happens at settlement?
Although settlement details vary from area to area, three basic steps are always taken. The seller provides a marketable title, the buyer pays for the property, and receives a deed or bill of sale. Settlement usually takes place in less than an hour.
The seller signs the settlement papers and the deed. The buyer signs the settlement papers and mortgage note.
All payments are detailed on standard federal settlement forms. The buyer pays whatever is owed on the down payment plus the buyer's closing costs.
When all papers are signed and checks have changed hands, you receive your keys. Your house is sold and the transaction officially settled when the papers are recorded.