Finally! Closing is on the horizon. The Buyer is packed and ready to move into their new home. The Seller is moving out of town and needs the proceeds of their sale right away. And, of course, as the Realtor, you want to get paid! The closing documents are prepared and ready for signing. So, what does timing have to do with anything?
The time your client chooses to close has everything to do with a smooth closing! Unless this is your first closing, you already know that many processes must occur after your client has signed their closing documents and before closing/possession can take place. At the very least, the exchange of the deed for the purchase price must take place. But, most likely wires must also be sent and received and funding authorization must be obtained before the exchange can take place, all of which take time and patience. The last thing you want to hear on the day of closing is that funding/possession won’t occur for lack of time. Yikes!
The Sales Contract states: “All parties agree to sign Closing Documents at a TIME that facilitates this possession (closing/funding)”. (paragraph 5, lines 78-79)
So, what is the best time of day for a smooth closing?
If you are a cautious Realtor and want to make sure your clients sign at a time to facilitate funding/possession, insist that your Buyers close early in the day and that the Sellers close before the Buyer (if possible, it is good if the Seller can pre-sign the day before the closing date). Why?
More often than not, the Buyer’s lender needs certain documents signed by the Seller. (in addition to the Buyer) before they can begin the process of providing funding authorization and the issuance of their wire. When the Seller signs their closing documents before the Buyer, the title company has what they need in advance to facilitate to closing. If the Seller signs after the Buyer, there is a delay in obtaining the Seller documents required for funding authorization. When the Buyer and Seller are closing at different title companies, another series of wiring must take place before funding/ possession can occur. Of course, all of this takes time! As the old saying goes, “the early bird gets the worm”!
Your Investors Title Company closing team is eager to help you select the best closing time for your client!