Closing, Escrow, and Post-Closing Responsibilities
Closing mechanics
Minnesota closings are commonly handled by a title company acting as closing agent; Minnesota does not require attorneys at closing, though parties may hire one. The title company issues a title commitment, clears exceptions, and issues an owner's policy and a lender's policy. Funds flow through escrow: the buyer's down payment and loan proceeds in, payoffs and seller proceeds out. The deed is recorded, deed tax paid, mortgage registry tax paid, and the mortgage recorded.
Preparing the settlement statement requires prorations: taxes, rent, HOA dues, and utilities are divided as of the closing date on an accrual basis. TRID rules require the Closing Disclosure to reach the consumer at least three business days before consummation, with Saturdays counted as business days and Sundays and federal holidays excluded. Post-closing duties include distributing final documents, confirming recording, keeping records for the retention period, and following up on holdbacks or post-closing escrows.
Traps
- Promising 'clear title' - only the title commitment and policy speak to that.
- Treating the closing agent as the buyer's attorney.
- Miscalculating proration days (use a 365-day year for taxes unless the contract says otherwise).
- Forgetting that a corrected Closing Disclosure can restart the three-day waiting period.
Rule of thumb
Count backward from closing for TRID: closing Friday means the Closing Disclosure must be delivered no later than Tuesday.
Worked example
Annual taxes are $4,380, or $12 per day. Closing June 15 with the seller responsible through June 14 means 165 accrued days (Jan 1 through Jun 14). The seller owes 165 × $12 = $1,980, credited to the buyer at closing.