The Closing Date

It is absolutely essential that you include a closing date as part of your offer. This way both you and the seller can make plans for moving, and the seller can make plans for buying his or her next home. Though most transactions actually do close on the right date, do not be so inflexible that a delay creates insurmountable problems.

For example, if you are renting and need to give the landlord notice that you are moving out, you may want to allow a little flexibility. Otherwise, if your purchase closes a few days late you could find yourself staying in a motel with your belongings packed in a moving van somewhere while you pay storage costs.

There are also times when closing can be delayed by weeks, through no fault of your own. Have back-up plans prepared for such a contingency.

The Closing Process

Closing is widely considered to be the final process, or consummation of a real estate transaction. At closing, the ownership of the property is formally transferred to the buyer. Closing is also when the delivery of deed (DOD) occurs.

It’s very typical that closings take place at the offices of a title company, especially if the buyer is financing their purchase with a mortgage loan. Prior to the closing date, the title company will have provided a lot of services including a thorough title search. The title company for each transaction is typically chosen by the seller or their agent, though this is not always the case.

The final part of our real estate buying guide discusses the formal transfer of possession and getting the keys to your new home!