As defined in the residential sales contract, paragraph 5, line 69:
“The Closing is the exchange of the Seller’s Deed for the total purchase price.”
When the buyer and seller have signed their respective closing documents it is just the first step in a chain of events that must occur before Closing can take place. It takes time and patience after the document are signed before the transaction is closed and possession can take place.
When is lender is involved in the transaction, you can typically expect that the following must take place before the transaction is closed:
The lender must review and approve certain closing documents signed by the Buyer and the Seller. Once approved, the lender will provide the Buyer’s title company with funding authorization.
All funds for closing (the buyer’s, lender’s and if applicable seller’s funds) must be received by the title company(s) in the form of a cashier’s check or wire*.
The exchange of the Seller’s Deed for the total purchase price (closing) can take place. When the buyer and seller are closing at different title companies, the seller’s title company must be in receipt of wired* funds from the buyer’s title company for the exchange to be complete.
When Closing has occurred, possession can take place!
*Please note, the wiring of funds does not take place immediately. On busy days (Fridays and at the end of the month) there may be a longer delay in receiving wired funds.