Closing day, explained

Connecticut closings are handled by attorneys, not escrow or title companies. Your attorney and the buyer's attorney coordinate the payoff of your mortgage, the transfer of the deed, the settlement statement, and the exchange of funds. Your part on the day itself is usually short. The work is in the week before.

The week before closing

Your attorney will order a payoff statement from your mortgage lender and any home equity line, prepare the deed and the seller's closing documents, and work out the settlement figures with the buyer's attorney. You will be asked to confirm your forwarding address, how you want your proceeds delivered, and to sign several documents, sometimes ahead of time.

Meanwhile, you are finishing the move. Everything that does not convey should be out. Everything that does convey, along with the manuals, keys, garage remotes, mailbox keys, and codes, should be left for the buyer. The house should be broom clean: floors swept, surfaces wiped, nothing left in the basement, garage, attic, or shed that the buyer did not agree to take.

Utilities and services

Keep the electricity, heat, and water on through the closing date. The buyer needs them for the final walkthrough, and in winter a house with the heat off is a frozen pipe waiting to happen. Schedule the transfer or shutoff for the day after closing, not the day of. If you heat with oil, the contract usually addresses whether the buyer pays you for what is left in the tank, so have the gauge reading or a recent delivery slip handy. Cancel or transfer propane, trash, internet, alarm monitoring, and lawn service, and file your change of address.

The final walkthrough

Within a day or so of closing, the buyer walks through the house one last time to confirm it is in the condition the contract calls for, that agreed repairs were done, and that everything that conveys is still there. It is not a second inspection. If something is wrong, such as a repair that was not completed or damage from the move, the attorneys usually resolve it with a credit at the table rather than a delay. Leave receipts for any repairs you agreed to on the kitchen counter.

What you pay at closing

Your net proceeds are the sale price minus the mortgage payoff and the seller's closing costs. In Connecticut those typically include:

• Real estate commission, as set out in your listing agreement
• Connecticut conveyance tax, paid to the state and to the town, which together usually come to about one percent of the sale price and more on higher-priced homes and in certain towns
• Your attorney's fee
• Any agreed seller concessions or repair credits
• Prorated property taxes, and for condos, prorated common charges
• Recording fees for releasing your mortgage

You will see all of this on the settlement statement, and it should match the net sheet we prepared when you accepted the offer. If a number looks different, ask before you sign, not after.

Closing day itself

In many Connecticut closings the seller does not need to attend. You sign your documents with your attorney in advance, and the attorneys complete the closing between themselves, often the same morning. If you do attend, bring a government-issued photo ID and any documents your attorney requested. Once the buyer's funds have arrived and the deed is signed, the sale is complete and the attorneys arrange to record the deed on the town land records.

Keys typically change hands once funds are confirmed. Coordinate with your agent about where to leave them if you are not at the closing.

Getting paid

Your attorney disburses your proceeds, usually by wire the same day or by check, once the buyer's funds are received and the closing is complete. Be alert to wire fraud: your attorney's office will confirm wiring instructions by phone, and no one will ever email you a last-minute change to where the money goes. If you get one, call your attorney directly.

After closing, keep your settlement statement for your taxes. Most Connecticut sellers who lived in the home as a primary residence for two of the last five years owe no federal capital gains tax on a typical amount of gain, but confirm your situation with your accountant.