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What is Settlement and why the Deadline?

Hi there, everybody.

I’m Alixander, local realtor and real estate agent the state of Utah.

This is another Morning Edition of SLC agency, the local real estate agency of choice here in Salt Lake City, and we are broadcasting from KW Salt Lake City Keller Williams.

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So today’s video is part of the Real Estate Jargon series, that is the SD. What is it?

SD stands for settlement deadline

Well, let’s get into it.

SD stands for settlement deadline.

So what is settlement and why do we have a deadline for it?

Well, Settlement is the last part of the process and the transaction, and is in fact the period of which the seller let’s go of the property and the buyer accepts the property.

Prior to this point, we were just making sure that the home was valued for what it’s being offered for. And prior to that we’re investigating whether or not this home is what we want it to be. And prior to that you’re still shopping.

So the settlement really is the transferring part of the real estate transaction. It is in fact the part of the transaction that makes it all happen.

What Happens During Settlement

So what really happens?

Well, for most people, they like to call settlement closing. Settlement is not closing, and in a later video we’ll talk about what closing is.

But settlement is realistically two things:

  • First, it’s the seller agreeing to the paperwork which releases the ownership that they have to the buyer.
  • And the other part of that is the buyer signing the paperwork that says the property is mine and (maybe) the mortgage is also mine, too.

When these two things are done whether separately or jointly…

(generally, I found that sellers will sign at their own company and buyers will sign it their own company, the two documents represent one)

…that when this process takes place, the home will undergo its settlement; which is, that any money that is from the mortgage will be sent to escrow and escrow will handle the funds appropriately, divvying them out.

Once the funds have been dispersed, then a title, a recorded title, will be recorded with the state, with the county. Specifically, the bill of sale will be recorded.

When the Bill of Sale is Recorded

When the bill of sale is recorded, that is when possession occurs.

So Settlement, as you can see, is a very important time. It’s the time prior to taking possession.

I hope you can feel the seriousness of that because when settlement arrives… it is a serious time.

Can I see the home one more time before settlement?

You’ll have the opportunity to go and take a look at the house one last time before settlement.

[When you] look at it, consider:

  • Is everything that needs to be done been done?
  • Am I ready for this transition?
  • Am I ready to close this transaction?

That is settlement. And settlement is when, emotionally speaking, we settle the feelings that we have in ourselves as the buyer or as the seller.

Why is there a settlement deadline?

So I hope that gives you a little bit understanding of what the settlement is.

And why we have a deadline on it is very simple, time is of the essence people!

We need to finish this.

This needs to happen in the time we agreed.

Not just whenever we feel like it.

I mean, even when you’re there at the grocery store to buy that apple, it has to happen. And it has to happen, probably, preferably… as soon as possible.

If not now.

Outro

Thank you very much for joining me.

I’m Alixander, real estate agent here in Salt Lake City, Utah. Realtor with Keller Williams Salt Lake City.

Tomorrow, we’ve got a really really cool treat, and I hope that you’ll join us for that.

Thank you again and have a great day.

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