The sales contract allows for the buyer and seller to close at the title company of their choice. When the buyer and seller choose to close at different title companies it is commonly referred to as a “split closing”.
If your deal becomes a split closing, there are a few things to keep in mind for funding/closing.
In addition to the time that is required to fund the transaction when a lender is involved, more time is required to fund the sale when the buyer and seller are closing at different title companies. Why?
Assuming the buyer’s title company has received the lender’s funding authorization, and all funds necessary for closing have been received, the buyer’s title company must wire funds to the seller’s title company before money is available to pay the seller.
Wouldn’t it be awesome if closing occurred as soon as the buyer and seller signed all of their closing documents? Wouldn’t we all love that! But we must have patient and follow the instructions of the sales contract and the lender. Good things come to those who wait!