What happens at closing when you sell for cash
Closing is where the money and the deed change hands. Here's who runs it, what you sign and how you get paid.
No obligation. No pressure. Takes about 2 minutes.
The short answer
At a cash closing, a settlement agent, usually a title company or closing attorney, collects the buyer's money, pays off your mortgage and any liens, pays the closing costs and sends you what's left. You sign the deed and the settlement papers, and the agent sends the deed to be recorded in the local land records. With no lender involved, there's less paperwork than in a financed sale.
Step by step
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1
A neutral settlement agent runs it
A title company or closing attorney sits in the middle. The CFPB describes the settlement agent's job as collecting money from the parties and paying it out according to the sales contract.
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2
You review the settlement statement
Before you sign, you'll see a statement listing the sale price, your mortgage payoff, any liens, prorated property taxes, closing costs and your net amount. Check each line and ask about anything you don't recognize.
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3
You sign the deed
The deed transfers ownership to the buyer. The title company may also ask you to sign statements about the property, such as confirming there are no unpaid contractors.
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4
Payoffs, then your money
The agent pays your lender and any lienholders directly, pays the closing costs and sends you the balance by wire or check. If you choose a wire, confirm the instructions by phone with someone you already know at the title company, never from an email.
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5
The deed is recorded
The settlement agent submits the deed to be recorded. After closing the home belongs to the buyer, and you hand over the keys as the contract says.
Sources: CFPB: What can I expect in the closing process? ยท CFPB: Mortgage closing scams
This guide explains the general rules. It isn't legal advice. Your contract and situation may differ, so talk to a real estate attorney about your specific case.
Cash offer vs listing
Example: a $250,000 home
| Offer | $205,000 |
|---|---|
| Repairs | $0 |
| Commissions | $0 |
| Closing costs | $0 |
| You walk away with | $205,000 |
| In 7 to 14 days | |
| Sale price | $250,000 |
|---|---|
| Repairs | about $8,000 |
| Commissions | about $13,800 |
| Closing and holding | about $6,000 |
| You walk away with | about $222,200 |
| In 60 to 90 days | |
Example only. Your numbers depend on your home and market.
We show your cash net next to what listing could net well before closing, so the number on the settlement statement isn't a surprise.
Frequently asked questions
Do I have to be there in person?
Not always. Ask the settlement agent whether you can sign ahead of time or remotely; the options depend on the agent and the documents.
Who pays off my mortgage?
The settlement agent pays your lender directly from the sale money, using the payoff figure from your servicer. You receive what's left after payoffs and costs.
When do I get my money?
The settlement agent pays out once the papers are signed and the buyer's funds are in. Ask them ahead of time how and when your proceeds will be sent.
Who are you?
We are real estate investors based in Baltimore, helping homeowners since 2016. We buy houses directly for cash. We are not a licensed real estate brokerage and do not list homes ourselves; if listing could get you more, we show you the math so you can choose.