In Maryland, the closing is usually called settlement. For a seller it’s often the shortest part of the whole process, sometimes under an hour at the table. But a lot happens around it, and knowing the order of events makes the day much calmer.
I’m Evan Weissman. I buy houses across Maryland and sit at a lot of settlement tables. Here’s how the day usually goes from the seller’s side, plus the few days before and after.
The week before
Most of the work is done before settlement day. In the last several days, the title company or settlement attorney:
- Orders final payoff figures from your mortgage servicer and any other lienholders
- Confirms property tax, water, and any municipal charges, and in some jurisdictions orders a lien certificate
- Prepares the deed and the settlement statement showing every charge and credit
- Collects the buyer’s funds, or the lender’s
You should get a copy of the settlement statement before the day itself. Read it line by line. Check the price, the payoff, any credits you agreed to, how the transfer and recordation taxes are split, and the tax proration. Questions are much easier to fix a day early than at the table.
The buyer’s walk-through
Maryland contracts commonly give the buyer a final walk-through shortly before settlement. The buyer checks that the house is in the condition the contract requires, that agreed repairs are done, and that items you’re leaving are still there. If you’ve agreed to leave the house empty and broom clean, this is when it shows.
If something is wrong, it usually gets solved with a credit or an escrow at settlement rather than a delay. In an as-is cash sale, the walk-through is often brief, because the buyer has already accepted the condition.
What you’ll sign
The stack for a seller is usually shorter than the buyer’s. Typical items include:
- The deed transferring the property to the buyer
- The settlement statement, confirming the numbers
- Affidavits about liens, possession, and any work done recently
- A federal certification that you’re not a foreign person, or the forms for withholding if you are
- Information for the 1099-S the settlement agent reports to the IRS
- Maryland nonresident withholding forms, if you don’t live in Maryland
Bring a current government photo ID. If the house is in an estate, the personal representative signs with the letters of administration. If someone is signing under a power of attorney, the title company should have reviewed it well before the day.
Signing without being there
You don’t always have to sit at the table. Many settlement companies can arrange a mail-away package signed in front of a notary, or a remote online notarization, which Maryland allows. Plan ahead, because the deed has to be signed and notarized properly before the buyer’s side can close.
How the money moves
The buyer’s funds go to the settlement company’s escrow account. From there, the settlement agent pays your mortgage and other liens, the transfer and recordation taxes, any commission, and the other charges on the statement. What’s left is your proceeds.
Proceeds are usually sent by wire or check. Give your bank details to the settlement company in person or by a verified phone call, never by replying to an email. Settlement scams that impersonate title companies are common, and a confirmed phone number from the company’s official website is your protection. My article on the title company’s role covers this in more detail.
Recording the deed
After signing, the settlement company sends the deed to the land records office in the county where the house sits, along with the transfer and recordation taxes and the state intake sheet. Some counties require a lien certificate or a local stamp first, and nonresident withholding gets paid at recording too. The buyer becomes the owner of record once the deed is recorded, though that often happens a few days or weeks after settlement.
When something comes up at the table
Most settlements go smoothly, but a few things cause delays. A payoff figure that expired, a lien nobody knew about, a name spelled differently on the deed than on the ID, or a co-owner who can’t make it are the usual culprits. Each one is fixable, but it’s easier the earlier you spot it. If you know about a judgment, an old second mortgage, or a family member whose name is on the title, tell the settlement company right away.
Keys and possession
Most sales give the buyer possession at settlement. Bring every key, garage remote, and gate fob, and leave manuals and warranty papers in a kitchen drawer. If you negotiated a short rent-back to stay a few extra days, make sure the terms are written into the contract or a separate agreement.
The days after
A few loose ends:
- Cancel your homeowners insurance after settlement, not before
- Have utilities moved out of your name as of the settlement date
- Watch for a refund of any money left in your mortgage escrow account, which the servicer sends after the loan is paid off
- Keep your settlement statement with your tax records
My articles on who pays closing costs and capital gains tax on a Maryland home sale cover the money questions that follow.
How long does settlement take for the seller in Maryland?
The signing itself is often under an hour. Most of the work happens in the days before.
Do I have to attend settlement in person?
Not always. Many settlement companies offer mail-away signing with a notary or remote online notarization.
When do I get my money after settlement?
Usually by wire or check once the settlement agent has collected all funds and pays everything on the statement. Ask your settlement company about its timing.
What should I bring to settlement as the seller?
A government photo ID, all keys and remotes, and any documents the settlement company asked for, such as estate papers or a power of attorney.
Talk through your situation
If you’re getting ready to sell and want to know how settlement would work for your house, call or text me at (410) 498-7473. I’ll walk you through it step by step.