Understanding Real Estate Closing Dates
Whether you’re buying or selling a home, both parties should pay attention to the closing date. The closing date is one of the key components of any real estate transaction contract, so make sure you fully understand what it is.
What is a Closing Date?
The closing date is the day that ownership of the home transfers from the seller to the buyer. The closing date should be clearly stated in the sale contract and is agreed to by all parties. Both the seller and buyer should have all the necessary documents ready before the closing date.
Prior to the closing date, the buyer will make sure they have all the necessary documentation, register the mortgage and title change, and meet with the buyer to review and sign the purchase and financing documentation. On the closing date, the buyer’s representation will obtain the funds from the mortgage lender and make them available to the seller’s representation, along with all other payment funds. Once the funds have been transferred to the seller and the keys are released, the transaction is complete. Typically, all this should happen before noon on the agreed upon closing date.
Picking the Closing Date
After a sale price has been agreed upon, both the buyer’s and seller’s real estate agents will find the best closing date for both parties. The closing date has to be agreed upon by both sides and is usually determined based on convenience for both the seller and buyer.
It is possible to change the closing date if both parties agree. This could happen due to delays in the documentation, the seller needing more time to move out, the seller needing more time until their old home sells, or any other number of personal reasons. As long as both sides agree, it is okay to change the closing date.
During the closing process and on the closing date, it is important to have an experienced real estate agent by your side. They will ensure all the necessary documents are ready beforehand, that the home is in the agreed upon condition, and help negotiate if anything goes wrong. Feel free to contact us if you need help buying or selling your Richmond Hill home!