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.
With this kind of transaction, all the necessary procedures of normal transacting are completed while all the parties are present. The purchaser usually signs all the appropriate documents mandated by law in the presence of a personal attorney. The seller can decide whether to transfer or not transfer the house ownership to the buyer.
It is a known thing that lenders are responsible for most delays experienced in availing of finances. They usually have stringent procedures of carrying out this task. The most important being the need to screen documents after completion of the transactions. This makes the whole arrangement delay for several days.
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 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 This happens when the funding decision is rescinded and the title has already been transferred.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.
With this kind of transaction, all the necessary procedures of normal transacting are completed while all the parties are present. The purchaser usually signs all the appropriate documents mandated by law in the presence of a personal attorney. The seller can decide whether to transfer or not transfer the house ownership to the buyer.
It is a known thing that lenders are responsible for most delays experienced in availing of finances. They usually have stringent procedures of carrying out this task. The most important being the need to screen documents after completion of the transactions. This makes the whole arrangement delay for several days.
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 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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