What to Expect at a Real Estate Closing

I attended a closing that took less than five minutes. There was an attorney on each side plus the title closer. I said, "Wow, you guys really know what you're doing." Both attorneys laughed. The seller had signed the deed in advance — that was the only thing handled beforehand. Everything else, the attorneys signed right there at the table. The closer set a paper down, the seller's attorney signed it and slid it to the buyer's attorney, who signed it and handed it back to the closer. No explanation of each document needed. They knew what they were signing. Most closings don't go quite that fast, but that's the goal — everyone prepared, no surprises.

So what exactly should you expect? Let's break it down.

Fees — What to Expect

Closing costs have a lot of variables: state, county, lender, title company, sales price, and more. Everything below is Illinois-specific and approximate — every transaction is different and no two closings are exactly alike. For a more detailed breakdown of what to expect, visit the Services section at ollisauction.com.

Sellers generally see these costs come out of proceeds:

The closing fee coordinates the closing itself and is usually split 50/50 — though if the buyer's lender is running the closing, the seller typically doesn't pay it. The seller provides the buyer with an owner's title insurance policy, priced per thousand of the sales price. Additional costs include the title search, title examination, title insurance binder, and the Illinois Closing Protection Letter (IL CPL). State transfer stamp tax is $1.00 per thousand, county is $0.50 per thousand — most Southern Illinois towns don't have a city transfer tax, but check yours. The deed and PTAX-203 are prepared by an attorney. Real estate taxes are paid in arrears in Illinois, so the seller credits the buyer at closing for prorated taxes. Any outstanding liens must be resolved at or before closing.

If you have a mortgage, the title company will need your payoff amount before closing day. You will either complete a form giving the title company permission to request the payoff directly from your lender, or you will need to obtain it yourself and get it to the title company ahead of time. If your lender holds escrow for taxes or insurance, find out whether that balance is included in the payoff or whether a separate check will be coming to you. Your lender will only discuss this with you directly.

Earnest money is the deposit paid by the buyer at the time of contract to demonstrate they are serious about the purchase. It is not an additional cost — it is part payment toward the purchase price and will show up as a credit on the settlement statement at closing.

Cash buyers typically pay: their half of the closing fee, a buyer's title search, IL CPL, and recording fees at the county clerk's office — which vary by county.

Mortgage buyers add: lender's title insurance, title search and examination, title binder, credit report, flood certification, and an appraisal.

Bringing money to closing — Illinois law: $50,000 and over must be wired. Under $50,000 must be a certified check. Get wiring instructions directly from the closing agent — not from an email you weren't expecting. Wire fraud is real.

What You'll Sign

Every title company is a little different — the same basic forms show up at every closing, some companies have a couple of extras. Here's what you'll generally see.

The settlement statement is the big one — it shows every number from both sides of the transaction. You should receive it by email a couple of days before closing. Read it. If the buyer is getting a loan, federal law requires the lender to provide the Closing Disclosure at least three business days before closing — use that time. If something doesn't look right, ask before closing day. Changing a figure at closing can push the whole thing to the following week. Make sure the statement you sign at closing matches the one you reviewed.

Both buyers and sellers will generally sign the settlement statement, the ALTA statement, a tax proration affidavit, and a disbursement statement. The ALTA statement is a certification signed by both buyer and seller confirming there are no hidden claims, unrecorded liens, unpaid contractors, surprise leases, or anything else that could affect the title that the title company doesn't already know about — it's what gives the title company the confidence to issue the policy. The disbursement statement takes the settlement statement and combines both sides into one document — it shows the explicit check numbers and exactly where every dollar goes. It can look complicated at first glance but it's essentially the full picture of the transaction on one page.

Sellers also sign the deed, and both buyer and seller sign the PTAX-203 Illinois Real Estate Transfer Declaration, which is recorded with the deed. It documents the sale price and is how the state calculates transfer taxes. Sellers also sign a tax identification form providing their Social Security number or Federal EIN for reporting purposes.

Some title companies include a commission statement signed by both buyer and seller and any brokers involved — it documents exactly what commission is being paid and to whom, so the title company has confirmation that no one has a surprise claim after the fact.

Mortgage buyers sign a stack of lender documents on top of all of that — which is why if you're financing, you'll typically arrive about 30 minutes before the seller to get through all of it first.

Both buyers and sellers will need a current, valid, official ID — driver's license is standard. The closing agent is required to copy it for their file. Doesn't matter if you've known them your whole life. Bring the ID.

Before You Leave the Table

Sellers: Leave all utilities on through closing day — electric, water, gas, trash, all of it. Get final readings after closing, then cancel. Also cancel your insurance and any termite or pest contracts after closing, not before. Bring all keys and write down any door codes.

Buyers: Get utilities transferred into your name before or immediately after closing. Set up insurance before closing day. Ask for keys and codes at the table — don't assume they'll be waiting for you at the property.

In the meantime, be good to each other out there.

Happy Bidding! Kara C. Belcher-Miller

This post reflects my experience and general understanding of Illinois real estate practice. It is not legal advice. If you have questions about closing costs or the closing process specific to your situation, please consult a licensed Illinois real estate attorney — or ask your title company. They don't give legal advice, but they do know what they need to insure it.