The real estate industry conducts its business in a number of ways. One of them is dry closing and this occurs when no funds are released after the buyer and seller have signed the sale agreement. A couple of years ago this situation was virtually unheard off because many people preferred to avoid it.
This method of closing entails all the ordinary procedures of a conventional closing in the presence interested parties. The purchaser brings along a lawyer and signs all the necessary paperwork. The decision to transfer possession of the property lies with the previous owner.
On most occasions, the reason behind the delay in release of funds is caused by the lender. This is because sometimes they insist on reviewing all the signed paperwork before authorizing release of funds. This can usually take a few hours to few weeks depending on the deals complexity.
The finances also delay when there is need for the owner to reach out to the financier for vital information concerning the money. This always occurs when the buyer has access to institutional funding like the government. If the seller finds the whole setup to be convenient then the whole transaction can be sanctioned for completion and the money received later.
Other uncontrollable events can make the funds not be available at the signing venue. They include instances of the purchaser failing to complete and avail the recommended paperwork at the correct time. Sometimes the banks process the mortgage finalization stages at a slow pace.
It is important that both parties and their representatives be aware of this closing so that they can be able to prepare accordingly. This would help them in drafting other solutions that will make the deal successful. The attorneys may propose finishing the transaction with an escrow when the funds are likely to be released in few days.
Others may decide delaying the agreement until the money is availed. This is because reclaiming ownership of the property's title is hard to manage. This happens when the funding decision is rescinded and the title has already been transferred. Therefore, it is always recommended that possession of the property is hold by the seller until payment is made.
Finalizing an agreement this way does not imply the absence of finances. If it happens spontaneously, it should not be taken as a buyer's mischief. It is just an acceptable way of conducting real estate business.
This method of closing entails all the ordinary procedures of a conventional closing in the presence interested parties. The purchaser brings along a lawyer and signs all the necessary paperwork. The decision to transfer possession of the property lies with the previous owner.
On most occasions, the reason behind the delay in release of funds is caused by the lender. This is because sometimes they insist on reviewing all the signed paperwork before authorizing release of funds. This can usually take a few hours to few weeks depending on the deals complexity.
The finances also delay when there is need for the owner to reach out to the financier for vital information concerning the money. This always occurs when the buyer has access to institutional funding like the government. If the seller finds the whole setup to be convenient then the whole transaction can be sanctioned for completion and the money received later.
Other uncontrollable events can make the funds not be available at the signing venue. They include instances of the purchaser failing to complete and avail the recommended paperwork at the correct time. Sometimes the banks process the mortgage finalization stages at a slow pace.
It is important that both parties and their representatives be aware of this closing so that they can be able to prepare accordingly. This would help them in drafting other solutions that will make the deal successful. The attorneys may propose finishing the transaction with an escrow when the funds are likely to be released in few days.
Others may decide delaying the agreement until the money is availed. This is because reclaiming ownership of the property's title is hard to manage. This happens when the funding decision is rescinded and the title has already been transferred. Therefore, it is always recommended that possession of the property is hold by the seller until payment is made.
Finalizing an agreement this way does not imply the absence of finances. If it happens spontaneously, it should not be taken as a buyer's mischief. It is just an acceptable way of conducting real estate business.
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