Although you may not have signed up for a dating website, the key to a perfect end to a real estate transaction involves selecting the perfect date! Whether you are putting an offer together for your buyer, or reviewing an offer with your seller, it is important to consider the practical implications of the selected Closing Date.
1. Leading Up to the Big Date. When should you talk to your client about the Closing Date? The best time to consider if you have the right Closing Date is before the Contract is executed. It is important to note, the earlier in the transaction, the better! All too often, buyers and sellers rely on being able to modify a Closing Date later in the process, which is not always an option. Once a Contract is signed, the terms can only be modified by written agreement between the parties.
2. The Date Location. Where will the parties be on the Closing Date? If the answer is not in the office of the closing agent, then the parties should ensure they understand their closing obligations before agreeing to a Closing Date. This is particularly important for a buyer obtaining financing. Loan documents may require in person notarization, and the loan documents are date sensitive. If travel plans or prior obligations may be an issue, make sure to speak with your closing agent ahead of time and understand the options and your client’s obligations.
3. Expectations of the Date. What other obligations does your client have? There are important considerations to be cognizant of as it relates to the Closing Date. For example, if the funds from a sale are needed for another closing, a 1031 exchange deadline, a deposit for another purchase, or other financial obligations. It is important for the parties to understand their Closing Date. Further, it’s important to understand how quickly funds will be available to ensure they make an informed choice about a Closing Date. Keep in mind, closing late in the day, especially prior to a holiday or weekend, could cause significant delays in the seller receiving their proceeds.
4. Dating Advice in General. How can you prepare your clients? The best advice to your clients is to discuss all aspects of the closing process with them when they select a Closing Date. This includes, but not limited to, outlining their requirements for wiring funds, executing documents timely to close, as well as setting expectations for when keys are exchanged, the transfer of utilities. Most importantly for a seller – the receipt of proceeds.
After all of the hard work that goes into making a transaction smooth from start to finish, something as simple as selecting the perfect date can ensure your transaction ends on a high note. If you have any questions or concerns about scheduling or timing for a real estate transaction we urge you to contact your local real estate attorney.
Natasha Selvaraj, Esq., firstname.lastname@example.org
Berlin Patten Ebling, PLLC
This communication is not intended to establish an attorney client relationship, and to the extent anything contained herein could be construed as legal advice or guidance, you are strongly encouraged to consult with your own attorney before relying upon any information contained herein.
All rights reserved. This copyrighted material may not be re-published without permission. Links are encouraged.
3700 South Tamiami Trail, Suite 200, Sarasota, FL 34239
P (941) 954-9991 F (941) 954-9992
247 Tamiami Trail South, Suite 201, Venice, FL 34285
P (941) 955-9991 F (941) 484-9992
8433 Enterprise Circle, Suite 100, Lakewood Ranch, FL 34202
P (941) 907-9022 F (941) 907-9024
324 S. Hyde Park Ave., Suite 325, Tampa, FL 33606
P (813) 467-7500 F (813) 251-1662
3179 4th Street North, St. Petersburg, FL 33704
P (727) 822-2505 F (727) 822-2909