You accepted an offer, cleared inspection, and made it through the appraisal. For most sellers, that feels like the finish line. It is not.
The closing process for home sellers in Metro Detroit runs 30 to 45 days after an accepted offer, and it involves more moving parts than most people expect. Documents have to be prepared, signed, and recorded. Your mortgage payoff has to be calculated to the day. The title company has to clear every lien on the property. The buyer’s lender has to give final loan approval. Any one of those pieces, if delayed or mishandled, can push your closing date or unravel the deal entirely.
This is the post I wish every seller I work with had read before we got to this stage. I will walk you through exactly what happens, what you need to do, what can go wrong in Michigan specifically, and what closing day actually looks like from start to finish.
Watch the Video: What Every Home Seller Needs to Know About Closing
In this video, I break down the closing process step-by-step so you know exactly what to expect — and how to avoid delays — once your home is under contract.
What the Closing Process Actually Covers
Most sellers think of closing as a single appointment. It is actually a sequence of events that begins the day your purchase agreement is signed and ends when funds are wired to your account.
Here is what is happening in the background during those 30 to 45 days:
The buyer’s lender is completing final underwriting on the loan. Even if the buyer was pre-approved, the lender runs a full review of income, assets, and employment before issuing a clear to close. That process typically takes two to three weeks.
The title company is conducting a title search on your property. They are looking for anything that could cloud ownership — outstanding mortgages, unpaid tax liens, judgment liens, easements, or errors in prior deeds. If something turns up, it has to be resolved before the title company will issue title insurance and allow the deed to transfer.
Agreed-upon repairs are being completed. If the purchase agreement requires you to address items from the inspection, documentation and receipts will be needed at closing. Repairs that are incomplete or unverified on closing day are one of the most common causes of last-minute delays.
Prorations are being calculated. Property taxes in Michigan are paid in arrears and collected in two cycles — summer and winter. The title company will prorate your taxes through the closing date and credit the buyer accordingly, which affects your net proceeds.
Your mortgage payoff is being requested. The title company reaches out to your lender to obtain a payoff statement. Payoff amounts include your remaining principal balance, interest accrued through the closing date, and any lender fees. These numbers are accurate only for a specific payoff date, so timing matters.
The ALTA Settlement Statement — The Document That Shows You Everything
A few days before closing, the title company will send you an ALTA Settlement Statement. This is the most important document you will review before you sign anything.
The ALTA statement is a line-by-line breakdown of every credit and debit associated with your sale. It shows your sale price, your mortgage payoff, the Michigan transfer tax, prorated property taxes, title fees, commission, and any other agreed-upon costs. The bottom line of your seller column is your net proceeds — the actual amount you will receive at closing.
Here is what to review carefully when you receive it:
Your payoff amount. Confirm it matches what your lender has provided. An incorrect principal balance or a missing per diem interest calculation can change your net proceeds by hundreds of dollars.
Prorated taxes. Michigan sellers credit buyers for the portion of the year the seller owned the home, because property taxes in Michigan are paid in arrears. Confirm the proration date matches your closing date exactly.
The transfer tax. Michigan charges a combined state and county transfer tax of $4.30 per $500 of sale price, which works out to 0.86 percent of the total sale price. On a $600,000 home, that is approximately $5,160 coming off your proceeds. By custom in Michigan, the seller pays this at closing, though it is technically negotiable. Make sure the amount on your ALTA statement matches the calculation for your sale price.
Agent commission. Confirm the commission amount and split match what is written in your listing agreement.
Seller credits. If you agreed to provide the buyer with a closing cost credit, a repair credit, or any other concession, verify it appears on the statement as written in the purchase agreement.
Any unfamiliar line items. Ask your agent or the title company to explain any charge you do not recognize before closing day. A wrong number or missing credit is far easier to correct before you sign than after.
Request the ALTA statement as early as possible — ideally 48 to 72 hours before your appointment — so you have time to review it without pressure.
Michigan-Specific Closing Details Sellers Need to Know
Closing in Michigan has a few characteristics that are different from other states, and understanding them in advance prevents surprises.
Michigan uses title companies, not attorneys, to close most residential transactions. Unlike states where a real estate attorney presides over the closing, Michigan closings are typically conducted by a title officer or escrow agent at a title company. Your agent will coordinate with the title company throughout the process.
The state transfer tax has an exemption for certain sellers. If you are selling your principal residence and you purchased the home after 1994, you may qualify for a Michigan state transfer tax refund after closing under MCL 207.526. This is a refund you must claim separately from the Michigan Department of Treasury — it does not happen automatically at the closing table. Ask your agent whether you may qualify.
Property tax proration can be complex if you are near a tax due date. Michigan summer taxes are typically due by September 14 and winter taxes by February 14. If your closing falls near either of those dates, confirm with the title company exactly how the proration is being calculated and whether any taxes are currently delinquent on the property.
Wire fraud is a real risk in Michigan closings. Title companies and real estate attorneys in Michigan have been targeted by wire fraud schemes in which scammers intercept communications and provide fraudulent wiring instructions. Never send funds or respond to wiring instructions received by email without first calling the title company directly on a verified phone number to confirm. This applies to any funds you send and to the proceeds you are expecting to receive.
Your Checklist as the Seller During Closing
This is what you are responsible for during the 30 to 45 days between accepted offer and closing day.
Complete all agreed-upon repairs and document them. Organize receipts, contractor invoices, and any warranties before closing. The buyer’s agent will likely ask for documentation during the final walkthrough.
Allow access for the final walkthrough. The buyer has the right to a final walkthrough of the property, typically in the 24 hours before closing. The home should be in substantially the same condition as when the offer was accepted, and all agreed repairs should be complete.
Confirm your move-out date and possession terms. The purchase agreement specifies when possession transfers to the buyer — often at closing, but sometimes with a negotiated post-closing occupancy period. Make sure your move-out plan aligns with the contract.
Gather utility account information. The buyer will need to transfer gas, electric, water, and other utilities into their name. Have account numbers and provider contact information available at or before closing.
Review and sign closing documents in advance if possible. Many Michigan title companies now offer remote or pre-signing options. Pre-signing at least the seller packet before closing day reduces the time you need to spend at the title office and eliminates a last-minute bottleneck if scheduling conflicts arise.
Provide a forwarding address to the title company and your agent. Any prorations, refunds, or tax documents generated after closing will need to reach you.
What Happens on Closing Day
On the day of closing, the sequence typically looks like this:
The buyer and their agent arrive at the title company and spend one to two hours signing the full mortgage packet — the promissory note, deed of trust, closing disclosure, and all associated loan documents. The buyer’s funds are also confirmed and received at this stage.
You will sign a much shorter seller packet. The seller’s documents include the warranty deed (which transfers ownership to the buyer), the ALTA Settlement Statement, an affidavit of title confirming there are no known title issues, payoff authorization forms, and any state-required disclosure acknowledgments. Plan for 20 to 30 minutes at the title office for the seller side.
You hand over the keys, garage openers, and any access codes. Some sellers include appliance manuals or vendor contacts for the new owner — a gesture that costs nothing and is often remembered.
Once all documents are signed and the buyer’s funds are received and verified, the title company disburses proceeds. Your mortgage payoff is wired to your lender. Agent commission is paid out. Your net proceeds are sent to you by wire transfer or, in some cases, by check. Wire transfers to sellers typically settle within 24 hours of closing. In most same-day transactions, sellers receive confirmation of the wire the same afternoon.
What Causes Closings to Fall Apart — and How I Prevent It
The closing process fails for a predictable set of reasons. In my experience across Wayne, Oakland, and Macomb Counties, these are the situations that most often cause delays or deal collapse at this stage:
Financing issues on the buyer’s side. Even pre-approved buyers can lose their financing if their financial situation changes between pre-approval and closing — a new car loan, a job change, or a large deposit into their bank account can all trigger a lender hold. When I am representing the seller, I watch for milestone deadlines in the purchase agreement and follow up proactively if the buyer’s agent goes quiet.
Incomplete repairs. Sellers sometimes misunderstand which repairs were formally agreed to in the purchase agreement versus items flagged informally during negotiations. I document every repair agreement in writing and provide my sellers with a written checklist before they schedule contractors.
Title issues. An old lien, an unreleased mortgage from a prior sale, an easement that was never recorded correctly — these turn up during the title search and must be resolved before closing can proceed. Some are quick fixes. Others require legal action that can take weeks. The earlier a title issue is identified, the more options exist for resolving it.
Appraisal delays or low appraisals. If the buyer’s lender requires a second appraisal or if the initial appraisal comes in below the agreed price, the transaction may need to be renegotiated. This is more common in the $500,000 to $800,000 range, where comparable sales can be limited in some communities.
Walkthrough disputes. If the buyer identifies a problem during the final walkthrough that was not there at the time of the accepted offer — new damage, a missing fixture, incomplete repairs — closing may be delayed while the issue is addressed. The best defense is leaving the property in excellent condition and documenting its condition thoroughly before the walkthrough.
My role throughout the closing process is to stay ahead of all of these scenarios, communicate proactively with the buyer’s agent and the title company, and give you enough lead time to respond to anything that comes up without rushing into a bad decision.
After Closing — What Comes Next
Once you have signed and your proceeds have been received, there are a few things to address in the weeks that follow.
Keep your closing documents. The ALTA Settlement Statement, the warranty deed, and all signed closing paperwork should be retained permanently. Your accountant will need the settlement statement if there are capital gains tax implications from the sale.
Forward your mail and update your address. Mortgage payoff confirmation, final utility bills, and property tax adjustments can arrive by mail for 60 to 90 days after closing.
Ask your agent about the Michigan state transfer tax refund. If you qualify under MCL 207.526, the refund request must be filed with the Michigan Department of Treasury. Your agent or a real estate attorney can walk you through the process.
Confirm your mortgage payoff. Within 30 to 60 days of closing, your previous lender will send confirmation that the loan has been paid in full and that the lien has been released. Keep that document.
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Frequently Asked Questions
How long does the real estate closing process take?
Most closings in Metro Detroit take 30 to 45 days from accepted offer to closing day. Cash transactions can close in as few as 10 to 14 days. Transactions involving FHA or VA loans may take slightly longer due to additional lender requirements. The actual time depends on how quickly the buyer’s financing is finalized, how efficiently the title search is completed, and whether any issues arise during the process.
What documents does a seller sign at closing in Michigan?
Sellers typically sign a warranty deed, an ALTA Settlement Statement, an affidavit of title, payoff authorization forms, and any state-required disclosure acknowledgments. Sellers do not sign the buyer’s loan documents. The seller’s signing appointment at the title company generally takes 20 to 30 minutes.
When does a seller receive their proceeds after closing?
Proceeds are typically disbursed on the same day closing documents are signed and buyer funds are confirmed. Wire transfers to sellers generally settle within 24 hours. If your closing is later in the afternoon, your wire may not post until the following business day. Ask the title company for the expected disbursement timeline when you confirm your closing appointment.
Who pays the transfer tax in Michigan?
By custom in Michigan, the seller pays both the state transfer tax ($3.75 per $500) and the county transfer tax ($0.55 per $500), for a combined rate of $4.30 per $500 of sale price. On a $600,000 home, this amounts to approximately $5,160. The transfer tax is negotiable in the purchase agreement, but the seller paying it is the strong custom throughout Metro Detroit.
What is the ALTA Settlement Statement and when will I receive it?
The ALTA Settlement Statement is a line-by-line financial summary of your home sale. It shows your sale price, all credits, all deductions, and your net proceeds. The title company typically provides a draft version one to three days before closing. You should request it as early as possible and review every line with your agent before closing day.
Can a home sale fall through during the closing process?
Yes, though it is not common. The most frequent causes are buyer financing failure, unresolved title issues, significant walkthrough disputes, or a low appraisal that cannot be resolved through negotiation. An experienced agent will monitor the transaction actively through every stage to identify and address issues before they escalate.
What happens if the buyer’s financing falls through before closing?
If the buyer is unable to obtain financing and has an active financing contingency in the purchase agreement, they are entitled to cancel and receive their earnest money back. If the financing contingency has expired and the buyer cannot perform, you may be entitled to retain the earnest money deposit. The specific terms depend on what is written in your purchase agreement, and your agent should walk you through your options immediately if a financing issue is raised.
About Leslie E. Martin
Leslie E. Martin is a licensed real estate agent serving Metro Detroit, including Wayne, Oakland, and Macomb counties. Since 2018, she’s specialized in helping homeowners sell for top dollar through expert staging, professional photography, and strategic marketing. She’s been featured in Canvas Rebel’s Hidden Gems series and has earned dozens of verified 5-star reviews from happy clients on Google, Zillow, and Realtor.com.
Leslie Martin
River Oaks Realty
📧 Leslie@LeslieEMartin.com
📱 Instagram: @LeslieEMartinDTW