This checklist is for the paralegal or closing coordinator who runs residential closings at a law firm. It follows a purchase file from the day the signed contract arrives to the day the recorded deed comes back, and it is written so that each item has an owner and a point at which it is finished.
Closing practice varies a great deal by state. In some states an attorney conducts the closing and acts as settlement agent; in others a title or escrow company does, and the firm represents one side. Local custom decides who orders title, who prepares the settlement statement, and who records. Treat the list below as a base to adapt to your state and your firm’s role in the transaction, and delete the steps that belong to someone else.
Phase 1: Open the file the day the contract arrives
Most closing problems start as something that was not written down in the first two days. The file-opening work is dull and quick, and it is the part most often done half-way because the closing date looks a long way off.
Confirm the contract is complete
Check that every page is present and signed or initialed where the form requires it, that every addendum and counter-offer is attached, and that the effective date is clear. Many contracts define the effective date as the date of final acceptance, and every contingency period counts from it, so a missing initial on the last counter-offer can move every date in the file.
Pull the terms into the file
Record the purchase price, earnest money amount, who holds it and when it is due, each contingency period (inspection, appraisal, financing, sale of another home, HOA document review), the closing date, the possession date, seller credits, repair obligations, and the legal description. Note any unusual clause in a line of its own so it is not lost inside the PDF.
Calendar every contract date on the day you open the file
Give each date an owner and at least two reminders. Read how the contract counts days before you enter anything: some forms count calendar days, some count business days, and some move a deadline that falls on a weekend or holiday. Enter the date the contract produces, and note in the file how you calculated it.
Build the contact sheet
List the buyer, seller, both agents, the loan officer and processor, the title agent and underwriter, the surveyor, the HOA or management company, and every lender that will need a payoff. Take phone numbers from an independent source at this stage (the lender’s or title company’s own website, a prior file, a directory), not from email signatures. Those are the numbers you will use later to confirm wire instructions.
Send an opening letter
One letter or email to every party saying who is handling the file, how to reach them, and what you need from each of them and by when.
Confirm the earnest money
Get written confirmation from the holder that the deposit arrived, and save it to the file.
It helps to work backward from the closing date for the documents that come from outside the firm. The lead times below are a starting point, not a rule; adjust them to how quickly the lenders, HOAs and title agents you deal with actually respond.
| Item | Comes from | Aim to have it |
|---|---|---|
| Title commitment | Title agent | 3 to 4 weeks before closing, so there is time for curative work |
| HOA estoppel or resale certificate | HOA or management company | Ordered at file opening; in hand 10 to 14 days before closing |
| Survey (if required) | Surveyor | 2 weeks before closing |
| Loan commitment or clear to close | Lender | Before the Closing Disclosure is issued |
| Payoff statements | Seller’s lenders | Ordered early; updated figure good through the expected funding date |
| Homeowner’s insurance binder | Buyer’s insurer | 1 week before closing (the lender will ask) |
| Closing Disclosure | Lender | Received by the borrower at least 3 business days before consummation |
Done when: the contract is complete, every date is on the calendar with an owner, the contact sheet is built, the opening letter has gone out, and the earnest money receipt is in the file.
Phase 2: Order title early and read the commitment
Order the title search and commitment when the file opens. Waiting for the loan to be approved saves nothing and removes the weeks you would otherwise have to clear a problem. A defect found a month before closing is a task; the same defect found three days before closing is a delayed closing.
Check Schedule A against the contract
Schedule A of the commitment names the proposed insured, the policy amounts, who currently holds title, and the land. Compare each against the contract and the vesting deed. The seller named in the contract should match the owner of record exactly, including middle initials, suffixes and the full entity name. If the seller is an LLC, corporation or trust, add the authority documents (resolution, operating agreement or certificate of trust, and a certificate of good standing where the underwriter asks for one) to your list.
Work the requirements, then read the exceptions
On the current ALTA commitment form, Schedule B, Part I lists the requirements that must be met before the policy issues: payoffs, releases, affidavits, the documents that will be recorded. Part II lists the exceptions the policy will not cover, such as easements, restrictions and survey matters. Each requirement in Part I becomes a task with an owner. Each exception in Part II goes to the attorney, who decides whether the buyer should be told about it or whether it should be removed or insured over.
Compare the legal description
It should match the contract, the vesting deed, the survey, and later the lender’s security instrument. Lot-line adjustments, condominium unit numbers and older metes-and-bounds descriptions are where mismatches usually appear.
The usual curative items, and how they are normally cleared:
| Issue on the commitment | Usual fix | Who moves it |
|---|---|---|
| Prior mortgage paid off but never released | Release or satisfaction from the old lender, or the underwriter’s procedure for a missing release | Title agent, with the firm following up |
| Judgment or tax lien against the seller | Payoff at closing and a recorded release | Seller, title agent |
| Judgment against someone with a similar name | Name or identity affidavit | Seller signs; title agent accepts |
| Mechanic’s lien | Payment and release, or bonding off the lien under state law | Seller and contractor |
| Owner has died; estate not settled | Probate documents, or the state’s small-estate procedure | Estate’s attorney; can take months |
| Clerical error in a recorded document | Corrective deed or affidavit, as the underwriter requires | Attorney drafts; parties sign |
Check for charges the land records will not show
In some places unpaid water, sewer or other municipal charges, open permits and code violations attach to the property without appearing in the county records. Where that is the local practice, order a municipal lien search at the same time as title.
Order payoffs and the HOA estoppel now
Ask each lender for a payoff statement with a daily interest (per diem) figure, then order an updated statement close to closing that is good through the expected funding date. Closings move, and a payoff good only through the original closing date will be short. If the seller has a home equity line of credit, the payoff letter is not enough on its own: get the lender’s written confirmation that the line will be frozen and closed on payment, so no new draws can be made after the figure is quoted. For HOA properties, ask for the estoppel or resale certificate at file opening and read it for special assessments, transfer fees and unpaid fines as well as regular dues.
Done when: Schedule A matches the contract, every Part I requirement has an owner, Part II has been reviewed by the attorney, and payoffs and the estoppel are ordered.
Phase 3: Settlement figures, the Closing Disclosure and funds
Know which statement the file uses
For most consumer mortgage loans applied for since October 3, 2015, the lender provides the Closing Disclosure under the federal TILA-RESPA Integrated Disclosure rule (TRID). Settlement agents usually also prepare an ALTA settlement statement, which comes in four versions (combined, cash, borrower or buyer, and seller) and itemizes the charges on each side; ALTA says it is meant to sit alongside the Closing Disclosure, not replace it. A cash purchase has no Closing Disclosure, so the ALTA statement carries the whole transaction. Reverse mortgages, which fall outside TRID, still use the older HUD-1 as of 2026, which we explain in our guide to the HUD-1 settlement statement.
Calendar the three-day rule
Under Regulation Z, section 1026.19(f), the borrower must receive the Closing Disclosure at least three business days before consummation. For this rule a business day is every day except Sundays and federal public holidays, so Saturdays count. A Disclosure delivered any way other than in person, including by email, is treated as received three business days after it was sent unless the lender can show the borrower got it earlier. A new three-day wait is triggered if the APR becomes inaccurate (in practice, usually an increase beyond the allowed tolerance), the loan product changes, or a prepayment penalty is added. The lender owns the borrower’s Disclosure, but when it is late the closing moves for everyone, so put the latest delivery date on the calendar and check with the lender the day before it. If your firm is the settlement agent, the seller’s Closing Disclosure is yours: Regulation Z requires the settlement agent to give it to the seller no later than the day of consummation.
Reconcile every figure to a document
The Closing Disclosure, the settlement statement, the lender’s closing instructions, the payoff statements, the HOA estoppel, the commission instructions and the tax figures should all agree. Every number on the settlement statement should trace back to a document in the file. If a figure has no source, find one before closing day.
Check the prorations
Property taxes are the usual source of error: depending on the county they are paid in advance or in arrears, and the contract says whether to prorate on the last bill or an estimate. HOA dues, rents and security deposits on tenant-occupied property, and fuel oil or utilities where the contract provides for them are the others. The contract, or local custom where it is silent, also decides whether the buyer or the seller owns the day of closing and whether the calculation uses a 365-day year.
Treat every wire instruction as unverified until someone has called
The FBI’s Internet Crime Complaint Center recorded 12,368 real estate fraud complaints and $275 million in losses in 2025, according to its 2025 annual report. That category covers investment, rental and timeshare fraud. A diverted closing wire is usually reported as business email compromise, a separate category with far larger losses, so the real estate figure understates the risk to a closing file. Your firm’s instructions for incoming funds should reach the buyer at file opening, in a way that tells them the instructions will never change by email. Before any outgoing wire, confirm the receiving account by phone using the number you recorded in Phase 1 or took from the payoff lender’s official website, never a number in the email that carried the instructions. Treat any message that changes wire instructions part-way through a file as fraud until proved otherwise. A second person should check each outgoing wire against the settlement statement before it is released, and someone should confirm receipt afterward.
Know when the loan funds
In a wet-funding state the lender releases the loan funds at or right after signing. In a dry-funding state the lender reviews the signed package first and funds a day or more later; Alaska, Arizona, California, Hawaii, Idaho, Nevada, New Mexico, Oregon and Washington are usually listed as dry-funding states. That affects when the seller is paid and when the buyer gets the keys, so tell both clients before closing day.
Done when: the Disclosure delivery date is on the calendar, the settlement statement reconciles to the source documents, and the wire procedure has been followed for every incoming and outgoing wire.
Phase 4: Closing day
Check identity and names
Check each signer’s government-issued photo ID against the lender’s and underwriter’s requirements. Signer names should match the vesting and the loan documents. If anyone signs under a power of attorney, the lender and the title underwriter both need to approve it in advance, and the power of attorney will usually be recorded with the deed.
Notarize the documents that will be recorded
The deed and the mortgage or deed of trust must be acknowledged before a notary to be recorded, along with some affidavits and any power of attorney that will be recorded. Some states also require one or two subscribing witnesses on deeds and mortgages, and a missing witness gets a document rejected as surely as a missing notary. The promissory note and the Closing Disclosure are signed but not notarized. The lender’s closing instructions set the order of its package. If a signer will use remote online notarization, confirm ahead of time that your state allows it, and that the lender, the title underwriter and the county recorder will all accept it. Most states now allow it, but acceptance by all three is what matters.
Check the package before anyone leaves the room
Go through every signature line, initial and date, and every notary certificate (venue, date, commission expiration, and the seal where your state requires one), plus witness signatures where they are required. A missing initial found while the signers are still in the room takes a minute to fix. The same error found after they have left can mean re-signing and a delayed recording.
Disburse only after funding is authorized
Do not release funds until the lender has authorized funding and the money has arrived in a form your state treats as collected funds. Several states have “good funds” rules on this point. Then disburse to the payees on the final settlement statement: payoffs, commissions, the seller’s proceeds, taxes and recording charges.
Done when: the package is complete and checked, funding is authorized, and every disbursement matches the final settlement statement.
Phase 5: Record, confirm the payoffs, and close the file
Run the bring-down search
Before recording, update the title search from the commitment date up to recording (often called a bring-down or gap search) to catch anything recorded since the commitment was issued.
Record promptly
Record the deed and the mortgage or deed of trust as soon as the file is funded, electronically where the county accepts e-recording. County requirements for cover sheets, margins, transfer tax forms and fees vary, and a rejected document costs days, so keep each county’s requirements in the file template rather than in someone’s memory. Put a follow-up date on the calendar to confirm the recording came back.
Confirm the old loans are released
Sending a payoff does not clear the record. Track each release or satisfaction until it is recorded. Many states set a deadline for the lender to record it, so calendar a follow-up and escalate if it passes.
Deliver the policies and trailing documents
The owner’s and lender’s title policies usually issue after recording. Send the owner’s policy to the buyer, and send the lender whatever its instructions list as trailing documents, usually the final title policy and the recorded security instrument.
Close the file properly
Send each client a closing letter with copies of the recorded deed, the final settlement statement and the Closing Disclosure, and suggest they keep them; the buyer will need them for tax purposes when the property is sold. In states with a homestead exemption, tell the buyer when and where to apply. Reconcile the file’s escrow ledger to zero, name the documents consistently (property address, document type, date), and archive the file under your firm’s retention policy.
Done when: both documents are recorded, every paid-off loan shows a recorded release, the policies are delivered, and the escrow ledger for the file is at zero.
Keeping the checklist the same on every file
A checklist protects the firm only if every file runs through the same version of it. Keep one master copy for each transaction type the firm handles (a financed purchase, a cash purchase, a refinance, and seller-only representation are the usual four) and remove the steps that do not apply rather than skipping them file by file.
When a closing goes wrong, add a line to the master copy. Most checklists that work were built that way: a rejected recording adds the county’s cover-sheet rule, a late HELOC payoff adds the freeze letter. Review the master copies once a quarter with the supervising attorney and drop anything nobody has needed in a year.
The same structure is what case management software can hold for you. The contract dates go on the calendar with reminders, the opening letters and the letters to lenders, title agents and surveyors come from templates filled from the file, and incoming email is filed against the matter instead of in one person’s inbox. The checking, the reading of the commitment and the phone calls stay with people.
Closing files that keep their own dates
The Real Estate Assistant in The Legal Assistant is built for real estate attorneys and their staff: hundreds of letter templates for banks, brokers, title agencies, surveyors and the register of deeds, contact databases for every party to a closing, critical dates on the office calendar with reminders and a nightly agenda email, and email filed straight to the matter. Free trial, no contract.
Frequently asked questions
What goes on a real estate closing checklist?
A working checklist covers five phases: opening the file (contract review, calendaring every contract date, contacts, earnest money), title and payoffs (the commitment, curative work, payoff statements, HOA estoppel), settlement figures and funds (the Closing Disclosure, the settlement statement, prorations, wire verification), closing day (identity, signing, notarization, the package check, disbursement), and post-closing (bring-down search, recording, releases of old loans, title policies, archiving).
How many days before closing must the Closing Disclosure be received?
For most consumer mortgage loans the borrower must receive it at least three business days before consummation. For this rule, business days are all days except Sundays and federal public holidays. A new three-day period starts if the APR becomes inaccurate (usually an increase beyond tolerance), the loan product changes, or a prepayment penalty is added.
What is the difference between the Closing Disclosure and an ALTA settlement statement?
The Closing Disclosure is the federal form the lender gives the borrower on most consumer mortgage loans. The ALTA settlement statement is a standard form settlement agents use to itemize every charge for the buyer and the seller. It is used alongside the Closing Disclosure, and it is the main statement in a cash purchase, where there is no Closing Disclosure.
Which closing documents need to be notarized?
Documents that will be recorded, mainly the deed and the mortgage or deed of trust, must be acknowledged before a notary, along with some affidavits and any recorded power of attorney. Some states also require witnesses on deeds and mortgages. The promissory note and the Closing Disclosure are signed but not notarized. State law and the lender’s instructions govern the details.
What is a gap or bring-down search?
It is an update of the title search from the date of the title commitment to the time of recording. It catches liens, judgments or conveyances recorded after the commitment was issued, before the deed and mortgage are recorded.
What is a dry-funding state?
A state where the lender reviews the signed loan documents before releasing the loan funds, so funding and disbursement can happen a day or more after signing. Alaska, Arizona, California, Hawaii, Idaho, Nevada, New Mexico, Oregon and Washington are usually listed as dry-funding states. In wet-funding states the funds are released at or right after signing.
This article is general information about law office workflow and does not constitute legal advice. Closing practice, recording requirements, funding rules and professional obligations vary by state and change over time. Decisions about title exceptions, curative work, disbursement and client advice are made by the responsible attorney under the law of the relevant jurisdiction.