In the real estate sector, there exists several ways of finalizing a sales agreement. The most intriguing one is dry closing as it happens when the buyer does not avail the agreed money on conclusion of the transaction. In the past, it was perceived as strange but today it is widely accepted.
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.
It can also occur when there is reason for the seller to communicate with the lender about the loans approval. This arises when the purchaser is seeking to finance the deal through a program arranged by the government. The seller has the sole power of accepting or rejecting this kind of arrangement. If agreed the government releases the funds according to its own schedule.
Several other unpredictable factors can cause business to be completed this way. The purchaser might fail in availing all the necessary papers in due time thus interfering with the loan's procession. The banks might also fail to finalize the payment procedures in a short time.
It is imperative to inform all parties at an earlier stage when conditions arise for this kind of closing. This prepares every person to come up with possible solutions to alleviate it. In most cases, the parties' legal representatives decide on forming an escrow setup that will see the deal through. They select this option in cases where the money is likely to be availed soon.
At times the Realtor withhold the deal until the funds is delivered. This happens because regaining a property's title is a long and difficult legal process. Sometimes the financiers fail to provide funds because of a number of technical issues after the ownership status has been changed to that of the purchaser. This brings long legal proceedings.
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.
It can also occur when there is reason for the seller to communicate with the lender about the loans approval. This arises when the purchaser is seeking to finance the deal through a program arranged by the government. The seller has the sole power of accepting or rejecting this kind of arrangement. If agreed the government releases the funds according to its own schedule.
Several other unpredictable factors can cause business to be completed this way. The purchaser might fail in availing all the necessary papers in due time thus interfering with the loan's procession. The banks might also fail to finalize the payment procedures in a short time.
It is imperative to inform all parties at an earlier stage when conditions arise for this kind of closing. This prepares every person to come up with possible solutions to alleviate it. In most cases, the parties' legal representatives decide on forming an escrow setup that will see the deal through. They select this option in cases where the money is likely to be availed soon.
At times the Realtor withhold the deal until the funds is delivered. This happens because regaining a property's title is a long and difficult legal process. Sometimes the financiers fail to provide funds because of a number of technical issues after the ownership status has been changed to that of the purchaser. This brings long legal proceedings.
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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