The subject-to closing checklist, step by step

By Stephanie Wilson, Lead Transaction Coordinator · Updated October 2, 2026

This is the checklist our coordinators run on every subject-to file. Use it as a punch list. If something on it doesn't have an owner and a date on your deal, that's the item that will bite you.

Day 1 — Contract in hand

• Executed contract with a subject-to addendum that states the existing loan stays in place and who pays what
• Earnest money delivered and receipted; deadline noted
• Written timeline built: inspection, title objection, closing date, and every deadline below
• Title opened, with the title company told in writing that this is a subject-to closing
• Seller sent a plain-English summary of what happens next

Days 2–7 — Information

• Seller signs a lender authorization so the loan servicer will release information to you and the title company
• Payoff or loan status letter requested: balance, rate, payment, escrow, next due date, arrears
• Copy of the seller's most recent mortgage statement in the file
• Entity taking title confirmed: name, EIN, formation documents, signer
• Insurance agent engaged; quote requested for a policy in the buyer's name
• Third-party servicer selected; setup paperwork started

Days 7–14 — Title and documents

• Title commitment reviewed; liens, judgments, HOA balances, and tax status listed
• Title objections sent before the deadline if anything is wrong
• HOA contacted for estoppel or status letter and transfer rules, if applicable
• Attorney or title company drafting: deed, subject-to disclosures, authorization to release information, and any note or agreement the structure needs
• Seller reviews documents before closing day, not at the table

Days 14–21 — Setup

• Servicer account opened; first payment date and amount confirmed in writing
• Insurance bound to start on the closing date; mortgagee clause matches the existing lender's requirements
• Seller's existing policy cancellation timed so there is no gap
• Utilities transfer scheduled
• Settlement statement drafted and reviewed against the contract

Closing week

• Final walk-through
• Funds to title: entry fee, closing costs, any arrears being brought current
• Seller signing scheduled, with a mobile notary if needed
• Buyer signing scheduled
• Deed recorded; recording confirmation in the file
• Servicer, insurance, and lender each notified that closing occurred

After closing

• Closing recap to the buyer: documents, contacts, first payment date, insurance renewal date
• Seller thank-you and a written note on what to expect from the servicer
• Copies of the recorded deed and settlement statement stored with the entity's records

Legal documents on this list are prepared by your attorney or the closing agent. Music City TC coordinates; we don't draft or give legal advice. Rules on disclosures and recording vary by county and change — confirm the current requirements with your title company.