What Happens After The Closing?
1. What is a closing statement?
A closing statement is an accounting of funds & other activities that transpire at the closing table. Your attorney will provid you a copy as well as the other important documents that were signed at the closing so you can keep a copy with your permanent records. You should forward a copy of your closing statement to your accountant for tax purposes.
2. Can I rent my house out to an individual or group?
You can usually rent your house to an individual as long as it is consistent with your mortgage agreement (some mortgages require you to be an owner occupant). Some municipalities requre rental permits & regulate group rentals. Consult your attorney when preparing any leases. If you rent the house on a 12 month basis, your homeowner’s policy will not cover fire or other losses & would need to be converted into a fire & casualty policy.
3. Can I maintain the same homeowner’s insurance from my previous home?
No. You should secure a new policy after a local insurance broker has inspected the premises.
4. Can I rebuild my shed, bulkhead, garage?
Before doing any renovations or construction, always check with the local zoning & building department in order to obtain any necessary permits.
5. Should I winterize & shut down my home if I don’t plan on living there year round?
Yes. If you do not plan to live in or heat the house during the cold winter months, you should definitely winterize the heating & water systems. Pipes could freeze & burst, causing floods in the house if you don’t. A local plumber can help you determine how to best do this. You should drain the water out of the house & pour antifreeze into the sinks, tubs, & toilets. Consider hiring a local house-watcher to check on the interior periodically.
6. How do I pay the real estate taxes?
At the closing, your attorney should have received a copy of the most recent tax bill. The taxes will be prorated as of the date of the closing, with the seller paying the per diem taxes up to the date of the closing & the buyer paying the per diem taxes for the rest of the year. The following year you will get a tax bill in the mail. If the closing occurs too late in the year, arrangements should be made so that the new owner will get the tax bill & not end up in arrears. Penalties will occur if the new owner doesn’t pay the tax bill, even if the bill was mailed to the wrong address.