In real estate transactions, the closing day signals the final steps in transferring a property from seller to buyer. The closing date is when all paperwork is finalized, closing costs are paid, the title is transferred, the buyer receives the keys, and the seller is free from the property. The closing date is determined prior to signing the contract, based on conditions and contingencies. Many closing dates are set to 30-45 days after the contract is signed, but it’s not uncommon for buyers to request closing dates 60 days after signing. Read the contract carefully and ask your real estate agent to explain the penalties and processes if a buyer missed the closing date.
So what happens if the buyer missed the closing date?
There are several reasons a buyer may miss the closing date, most of which can be rectified with a simple extension. For example, of the buyer’s home mortgage loan is delayed, the closing date in the contract can be extended to allow for the loan to process. In these cases, the seller’s real estate agent can reach out to the lender to estimate a completion date and then adjust the closing date accordingly with an addendum to the contract. The buyer missing the closing date due to loan processing can be minimized or eliminated with buyers who have secured pre-approval. In cases where the buyer has not been pre-approved, several complications could arise that could delay closing, such as making amends to negative credit reports, or struggling to obtain significant down payments.
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