Buying or selling in Petoskey and wondering what really happens between “offer accepted” and “keys in hand”? You’re not alone. The escrow and closing phase can feel complex, especially if you’re financing, buying waterfront, or closing from out of state. In this guide, you’ll learn who does what, how funds and documents move, what the timeline looks like, and the local issues that tend to surface in Northern Michigan. Let’s dive in.
Who runs your closing
In Michigan, a title company or a closing attorney typically serves as the settlement agent. This team performs the title search, issues the title commitment, prepares closing figures, holds funds in a trust account, and records documents after the signing. For you, this means one central coordinator manages payoffs, paperwork, and disbursements.
If you have a loan, your lender underwrites the file, orders an appraisal, and requires a lender’s title insurance policy before issuing a clear to close. The lender must also provide specific disclosures during the process. Your real estate agent keeps everyone on schedule and helps navigate inspections, repairs, and contingencies.
Here’s what each party handles:
- Buyer: complete loan conditions, secure homeowners insurance, and provide funds in the accepted form, typically a wire or certified funds.
- Seller: clear title, provide mortgage payoff details, sign the deed and transfer documents, and hand over keys and required disclosures.
The escrow agent follows written instructions based on the purchase agreement and lender requirements. They hold and disburse money from their trust account only as directed, which protects all parties.
Closing timeline in Petoskey
Most financed purchases close in about 30 to 45 days once your offer is accepted. Cash transactions often close faster, sometimes 7 to 21 days, since there is no lender underwriting. Timing can move in either direction based on inspections, appraisals, title work, and seasonal factors.
Step-by-step overview
- Offer accepted and contract becomes binding.
- Earnest money is deposited into escrow, often with the broker or title company.
- Inspections are scheduled, such as home, termite, septic, and well.
- If financed, the lender orders the appraisal and processes the loan.
- The title company completes the title search and issues a preliminary title commitment.
- Any title defects are addressed, and payoff statements are obtained for existing mortgages.
- Closing figures are prepared, including the settlement statement. If you have a mortgage, you will receive a Closing Disclosure at least 3 business days before closing.
- Final walk-through and closing appointment are set, either in person or remote.
- Buyer funds are wired or delivered as certified funds, and the lender wires loan proceeds to the settlement agent.
- The settlement agent records the deed and mortgage with the Emmet County Register of Deeds and then disburses funds.
Common bottlenecks
- Appraisal delays or low valuation relative to contract price
- Underwriting questions that require more documentation
- Unreleased liens or other title defects
- Seasonal slowdowns in appraisals, inspections, or recording
- Logistics for remote signings and notary scheduling
Title work and insurance
What a title search checks
Your title company searches public records for mortgages, liens, judgments, easements, deed restrictions, and ownership history. The result is a title commitment that lists what must be cleared and what will remain as exceptions to coverage.
Title commitment and exceptions
Outstanding mortgages and recorded liens are cleared through payoff at closing. Any tax liens or judgments must be resolved before you can take clean title. Easements, rights of way, and deed restrictions are disclosed and generally remain in place as exceptions. Recording errors or missing documents sometimes require affidavits or corrective deeds.
Title insurance basics
- Lender’s policy: required by most lenders to protect their mortgage interest.
- Owner’s policy: optional but recommended to protect your ownership against covered title defects and to help with defense costs.
- Cost: one-time premium paid at closing, typically based on purchase price and insurer rates in Michigan.
Lenders usually require the title commitment and the lender’s policy before clear to close. The owner’s policy is commonly issued at closing when the deed is recorded.
Waterfront and conservation nuances
Around Little Traverse Bay and our inland lakes, you may encounter riparian or littoral rights questions, conservation easements, and shoreline or docking restrictions. These items should appear in the title search and are important to understand before you finalize your purchase. Ask the settlement agent to explain any waterfront-related exceptions so you know what you can and cannot do with the property.
Funds, costs, and key documents
How your money moves
Buyers typically wire closing funds to the settlement agent’s escrow account or bring a cashier’s check if allowed by the title company. Personal checks are generally not accepted for closing funds. Lenders wire loan proceeds directly to the settlement agent, and sellers receive their net proceeds after payoffs and expenses.
Wire safety and fraud prevention
Wire fraud is a known risk. Protect yourself by verifying wiring instructions by phone using a trusted number for the title company. Do not rely only on emailed instructions. Confirm the final amount and the receiving account, and use multi-step verification whenever possible.
What you’ll likely pay
- Buyers: closing costs often total about 2 to 5 percent of the purchase price, not including your down payment. This can include origination fees, title charges, recording fees, and prepaids like insurance and taxes.
- Sellers: typical expenses include real estate commission and standard seller costs such as mortgage payoffs and transfer taxes where applicable. Total seller costs often land in the single-digit to low double-digit percent range depending on commission, concessions, and payoffs.
Exact figures depend on your loan type, sale price, negotiations, and local taxes and fees. Your settlement agent will provide a detailed statement closer to closing.
Prorations and adjustments
Property taxes are pro-rated between buyer and seller according to local schedules. HOA or condo dues and certain utility or municipal charges may also be prorated. The settlement statement will show these adjustments clearly so you can see your share.
Key documents you’ll see
- Purchase agreement and any addenda
- Title commitment and listed exceptions
- Seller’s deed, often a warranty deed in Michigan
- Closing Disclosure for most mortgage loans, delivered at least 3 business days before closing
- Final settlement or disbursement statement
- Mortgage documents if you are financing
- Standard affidavits and any required IRS forms
After signing, the settlement agent records the deed and mortgage with Emmet County. Once recorded, the deed becomes part of the public record.
Local factors in Northern Michigan
Waterfront specifics
Confirm shoreline and docking rights, and review any municipal or conservation rules that affect use. Easements and restrictions tied to shorelines are common and should be explained in the title commitment.
Septic, wells, and seasonal access
Many properties rely on private wells and septic systems. Build inspection windows into your contract and schedule specialists early. Seasonal road access can affect inspections, walk-throughs, and moving plans.
Shared driveways and private roads
Easements and maintenance agreements are common. Make sure you understand the terms that appear in the title commitment so expectations are clear for maintenance and access.
Common title defects locally
Older parcels sometimes reveal unreleased mortgages or missing conveyances. Waterfront and boundary lines can raise questions tied to historical shorelines. Unrecorded agreements, like verbal maintenance arrangements, can create disputes later. Early title review helps reduce surprises.
Seasonal timing and remote closings
Spring and summer can be busy, which can extend appraisal and inspection timelines. Winter weather can limit certain inspections. If you are out of state, many local title companies offer mail-away packages, mobile notaries, and remote options where allowed. Confirm requirements early so you can plan travel or remote signing dates.
Quick closing checklist
- Confirm the settlement agent and your main contact.
- Deposit earnest money and request a receipt.
- Schedule all inspections promptly, including septic and well if applicable.
- Stay in close contact with your lender and request an estimated clear-to-close date.
- Expect your Closing Disclosure at least 3 business days before signing if you have a mortgage.
- Verify wiring instructions by phone before sending any funds.
- Bring a valid photo ID to closing. If using a power of attorney, share it with the title company early.
- Keep your agent and title company looped in on last-minute details.
How I help you close smoothly
You deserve a closing that is clear, organized, and on time. I coordinate closely with your lender and the settlement agent, flag potential title or inspection issues early, and keep you informed at each step. Whether you are buying a lakefront retreat, acreage, or a year-round home, I help you plan for timelines, costs, and local nuances so you can close with confidence.
If you are considering a move in Northern Michigan, let’s talk through your goals and map your path to the closing table. Schedule a free consultation with Davis Labelle.
FAQs
What is escrow in a Michigan home purchase?
- In Michigan, escrow usually refers to funds held in a trust account by the settlement agent or broker, who disburses money only under written instructions at closing.
How long does a financed closing in Petoskey take?
- Most financed transactions close in about 30 to 45 days, depending on appraisal timing, underwriting, title clearance, and seasonal factors.
When will I receive my Closing Disclosure?
- For most mortgage loans, lenders must provide the Closing Disclosure at least 3 business days before closing so you can review final numbers.
Do I need an owner’s title insurance policy?
- It is optional but recommended, since it helps protect your ownership against covered title defects and can cover defense costs if issues arise.
How are property taxes handled at closing in Emmet County?
- Property taxes are typically prorated between buyer and seller according to local schedules, with details shown on the settlement statement.
Can I close remotely if I live out of state?
- Many local title companies offer mail-away packages, mobile notaries, and remote options where available; confirm logistics early to avoid delays.
What funds should I bring to closing and how?
- Buyers usually wire funds to the settlement agent or bring a cashier’s check if allowed. Always verify wiring instructions by phone before sending money.