The Real Estate Closing Process: Step by Step

Agreement of Sale (the Contract). Everything starts here. Most residential transactions use the standard PAR (Pennsylvania Association of Realtors) agreement of sale, a complex document with deadlines, contingencies, and default remedies that most buyers and sellers do not fully understand. Key contingencies include mortgage, inspection, appraisal, and sale of existing home. Each has a specific expiration date; miss it, and the contingency may be waived automatically.

Home Inspection & Negotiation. The buyer typically has 10-15 days for inspections (general, radon, termite, well/septic if applicable). Radon is common in Bucks County; many homes in the northern part of the county test above EPA action levels. The inspection report generates a "reply" where the buyer requests repairs or credits. The seller can accept, counter, or refuse, and the buyer can walk if the parties cannot agree within the contingency window.

Title Search & Examination. A title company searches the property's chain of ownership back at least 60 years in Bucks County, looking for liens, judgments, easements, restrictions, and defects. Common issues: unreleased mortgages, estates that were never probated, tax liens, and HOA assessments. In older Bucks County townships, descriptions sometimes reference landmarks that no longer exist.

Title Commitment. The title company issues a commitment to insure, a promise to issue title insurance at closing subject to listed exceptions and requirements. Review these requirements carefully; they often require satisfying liens, obtaining payoff letters, or resolving estate issues before closing can proceed.

Mortgage Commitment. If the buyer is financing, the lender issues a conditional mortgage commitment after underwriting. Conditions might include additional documentation, updated pay stubs, or verification of deposits. Until conditions are cleared and the commitment is final, the deal can still fall through.

Closing Disclosure (3 days before closing). Under federal TILA-RESPA rules (Regulation Z), the buyer must receive the Closing Disclosure at least 3 business days before settlement. It itemizes every cost: loan terms, closing costs, cash to close. Compare it to the Loan Estimate carefully.

Settlement (Closing Day). In Bucks County, settlement typically takes place at the title company's office or an attorney's office. Both parties sign a stack of documents, the deed, mortgage, transfer tax certifications, affidavits, and settlement statement. The buyer brings a cashier's check or wires funds. The seller delivers keys.

Recording. After closing, the deed and mortgage are recorded with the Bucks County Recorder of Deeds (55 E. Court Street, Doylestown). Recording gives the buyer's ownership legal notice to the world. Until the deed is recorded, a subsequent purchaser could theoretically claim priority. In Bucks County, base recording fees start at $82.75 plus per-page surcharges (see the Recorder of Deeds Fee Schedule). 15 Bucks County municipalities also require separate deed registration with the municipality within two business days of recording, which catches many buyers and even some attorneys off guard. See our Deed Registration Requirements page for the full list.