What Happens on Closing Day for Sellers in Minnesota?

On closing day, a Minnesota seller signs the documents that transfer the home, hands over the keys and waits for the proceeds to arrive. It is usually simpler than sellers expect, because the hard work is already done by then.

How a Minnesota closing is set up

In Minnesota, closings are typically handled by a title company, not an attorney. The title company is a neutral third party. It manages the closing, holds and pays out the funds, makes sure the documents are properly signed, and records the deed with the county afterward.

Your closing may take place at the title company's office or at a location that is convenient for you. Some closings are handled remotely, through electronic signing, remote online notarization, or a mail-away closing with a mobile notary. If you will need a remote option, tell your agent and the title company well in advance.

What to bring

Confirm the list with your title company ahead of time.

• A valid government-issued photo ID, such as a driver's license, state ID or passport.
• Any documents the title company has asked for, such as payoff confirmation for a second mortgage or home equity line of credit, or confirmation of agreed repairs.
• All keys, garage door openers, alarm codes and other access items, unless you have arranged another way to hand them over.

If you own the home jointly, both owners typically need to be there with ID. The exception is when a power of attorney has been arranged in advance.

The documents you sign

Most of your time at closing is spent signing. Your closing officer explains each document and gives you time to ask questions.

• The deed, which transfers ownership from you to the buyer
• The settlement statement, which accounts for all the money in the sale
• Mortgage payoff authorization, if you have a loan on the home
• HOA transfer documents, if the property has an HOA
• Seller's affidavits that confirm facts about the property and the sale

The settlement statement

This is the most important document you will review. It shows the sale price and any other amounts credited to you. It also shows what comes out of your proceeds, including your mortgage payoff, the real estate commission, any closing cost credits you agreed to give the buyer, the property tax proration, title fees and recording fees. The bottom line is your net proceeds.

The commission is the amount set in your listing agreement. It appears as a line item on the statement, and the title company distributes it. You do not write a separate check.

Property taxes are prorated between you and the buyer based on the closing date. The title company can show you how that figure was calculated, and a tax professional can answer questions about your own tax situation.

Ask for a preliminary settlement statement before closing day so you have time to review it. At closing, compare the final version to the preliminary one. Small differences, such as a final proration change, are normal. Ask about anything larger before you sign.

Keys and the condition of the home

By closing day you should have moved out and left the home in the condition you agreed to. The buyer typically has the right to a final walkthrough before closing, and any concerns from it should be settled before you sit down to sign.

Appliances, fixtures and anything included in the purchase agreement stay with the home. Your personal belongings and any excluded fixtures should be completely removed.

After you sign

Once both sides have signed, the title company coordinates the buyer's funds and prepares to pay out your proceeds. If the buyer's funds are already confirmed, you may be paid the same day. When the buyer has a loan, there can be a short wait while the lender funds it. Confirm your wire instructions with the title company ahead of time.

After closing, the title company records the deed with the county.

If something comes up

Most closings go smoothly. When one does not, it is usually for one of three reasons.

• A walkthrough issue. The two sides negotiate, which may lead to a price reduction, a credit at closing or a repair.
• A lender delay. This is the most common complication. The closing may be postponed briefly.
• A title issue. This is less common, and title companies usually resolve it, though some issues take more time.

Common questions

Is the closing date guaranteed? No. The date in the purchase agreement is a target. Lender delays, title issues or walkthrough items can move it.

What if the buyer's loan does not come through? The sale cannot close. The financing contingency in the purchase agreement governs what happens next, and an attorney can answer legal questions about it.

Can closing happen on a weekend or holiday? Closings typically happen on business days. Some title companies offer Saturday closings, but recording may wait until the next business day.

What about items I left in the home? Tell your agent right away. Items left at closing generally become the buyer's property unless other arrangements are made.

If you have questions about your own closing day, send us a message. We'll walk through each step with you. You can also read more on our selling your home page.