I am often asked if the Closing Date makes a difference. My answer is YES!!

When both Buyer & Seller sign a Purchase Agreement, it is binding. The provisions in the contract will spell out the events in which must take place before the close of escrow. Within that Agreement will be the provisions for the scheduled "Close of Escrow". A date is normally filled in when the offer is presented. Once the offer is presented, the Seller may choose to change the date before accepting. Both the Buyer and Seller should come up with a closing date that seems reasonable.

The closing date should allow enough time to apply for and obtain a mortgage, if the Buyer is getting a loan to help finance their purchase, and if the seller will choose a closing date which allows ample time to move out and find a new home or property. The closing date which is agreed upon, should also take into consideration such contingencies as property inspections, the title report review, and any special circumstances, such as one or more parties being out of town or out of the country, an estate or probate situation, or other complications which may involve legal assistance.

To set a reasonable closing date, both parties need to understand what their individual responsibilities will be before a closing can occur. The Buyer and Seller should list the tasks that each must perform and then try to calculate a time limit for each of these tasks. The Seller, for example, may find that there are liens or other encumbrances on the title of which they were not aware of, and these "clouds" on the title will need to be cleared up before the title can be transferred. The property inspection might show up minor defects which the Seller may be required to repair, or major defects might become evident, in which case the Buyer and the Seller may need to come to an agreement as to who will pay for these repairs. These types of events are not unexpected in a property purchase and should cause no delay in the closing, as long as they have been provided for ahead of time. Before setting a closing date, think of any situations which must take place before the closing.

The Seller may request that the closing date be contingent upon the sale of his present home. This date may be rather arbitrary, but a tentative 30, 60 or 90 day closing date could be set and when the actual closing date can be set, then an addendum to the purchase contract can be drawn and signed by Buyer and Seller. In this case, make sure to notify the escrow holder or closing officer of any changes in the date for closing.

Keeping the escrow officer informed of exact dates is very important, as he/she will be prorating and calculating certain expenses and credits, such as interest, taxes, and insurance and these will be calculated right up until the day of closing.