Buying a home: what happens between contract and closing

A signed contract is the beginning of a home purchase, not the end. The period until closing is short and full of deadlines, and missing one can cost you a right you bargained for.

Inspection and contingencies

Most contracts allow the buyer a limited period to inspect the property and to end the contract or negotiate repairs. Financing and appraisal contingencies work in the same way. These dates are firm. If you let one pass without acting, you may lose the protection it gave you.

Title search and insurance

A title search looks at the public record to confirm that the seller can transfer ownership and to identify liens, easements and restrictions. Lenders require title insurance and buyers should consider an owner's policy, which protects against many, though not all, defects in title.

Survey and permits

A survey confirms the boundaries and shows whether structures encroach. If the seller has recently built an extension or deck, ask for the permits and the final sign-off from the local authority.

The closing

Before closing you will receive a statement of the final figures. Compare it with your loan estimate. On the day you sign the loan documents and deed, funds are transferred and the deed is recorded. Do not wire money on the strength of an emailed change of instructions without calling a known number to confirm it, because payment redirection fraud is common.