Closing When Selling or Buying Your Crested Butte Home

There are several things to consider for closing when selling or buying your Crested Butte home. Unlike other transactions that can be verbal contracts, real estate contracts must be reduced to writing, signed, notarized and recorded in the county. The closing will be a final representation of the contract documents for the buyer and seller to sign. The closing occurs on the closing date (and time) as specified in the Contract to Buy and Sell, and the money will change hands on the closing date (unless otherwise specified). All the documents must be signed and many must be notarized. It is typical that the buyer will take possession of the home “upon closing” and receive keys to the home once the title company declares the transaction is officially closed.

What the Title Company Does

It is customary for the title company to handle all aspects of the closing when selling or buying your Crested Butte home. They act as agents for the listing brokerage by holding the earnest money. They also act as the “scrivener” to prepare all the closing documents. The title company also acts as an agent for the lender if there is a loan, ensuring that all loan documents are signed, and funds are disbursed.

The title company will prepare and send out a Seller’s Settlement Statement and a Buyer’s Settlement Statement prior to closing. These show the purchase price, payoff of any loans, liens, assessments, commissions, all the pro-rations of monthly and yearly costs, taxes, HOA fees, trash, etc. The Seller’s Settlement Statement will show the purchase price and less expenses and the final net proceeds to the seller. The Buyer’s Settlement Statement will show the purchase price and the additional closing costs to be paid by the buyer, and the final cash at closing due by the buyer.

These settlement statement documents will be reviewed again at closing and signed by the seller and buyer. Time permitting, the title company will also disburse funds the day of closing, and also “record” the transaction with the county so that the public record (and the chain of title) is accurate.

Liability for Buyers With Closing

Hopefully everything goes smoothly but some things can become complicated at closing when selling or buying your Crested Butte home. As a seller, you want to get your home under contract and close as soon as possible. The timing of the closing may create some challenges and be problematic. For example: it may be hard for you to get your stuff out on time. Or you may have scheduled a final family reunion at the mountain house during the time the buyer wants to close or you have short-term renters who booked the home, etc.

As a buyer this can also complicate things. These scenarios sound simple, and on the surface are no big deal, but they can create significant exposure and liability for the buyer. What if Aunt Betsy slips and falls on the ice, and sues you? What if the eight college students who are the short-term renters make a “totally awesome” fire in the fireplace that gets out of control and burns the house down? In such a case, it is best to move closing out one week. Or you should discuss these above scenarios with a competent real estate attorney.

Move Closing Up

I recommend to all sellers to close as early as possible, and if the buyer wants to move closing up, do what you need to do to make that happen (even if it costs you money out of pocket). Things happen, people die, get cancer, planes hit buildings, markets crash… and then real estate deals fall through. It is unlikely, but better safe than sorry. Your priority is to close. You can take the money and rent a place for your family. I have has seen it happen that a seller lost more than $100,000 due to ‘stuff’. Avoid any situations like that by being as flexible as possible when to comes to closing when selling or buying your Crested Butte home. 

How can I help you with your Crested Butte Real Estate Needs?

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Chris Kopf
Broker / Owner
Global Luxury Property Specialist
Coldwell Banker Mountain Properties
Chris.Kopf@CBMP.com
(970) 209-5405