When Will We Close?
In real estate when a property is sold there is a sale agreement. That agreement outlines the obligations of buyers and sellers. “Closing” or settlement is where the obligations of the contract are fulfilled — the buyer brings money, the seller brings title, the lender brings money for the purchaser, there is a title report, etc.
A sale agreement typically includes both a projected closing date (say 45 days from today) as well as language which allows for some flexibility (”closing will be on or about”).
Why have flexibility?
It sometimes happens that loan processing is delayed (papers are not available, perhaps), additional title work is required or other matters arise which make it in everyone’s best interest to delay closing.
Alternatively, delayed closings can be costly and inconvenient — especially when leases must end, people must move, workers are scheduled, etc. Thus, it’s important to have closing on a timely basis.
As a buyer or seller you have important rights regarding closing and when it takes place. For details, speak with your broker, attorney, or legal clinic.
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