Ralph's Helpful Tips: Closing Dates - A Foolproof Way of Avoiding Drama
Many times during the course of a purchase transaction, issues may arise that may need additional time to address, resulting in a need to extend the closing date of the transaction.
In addition, the actual closing date per contract that results after the last date of the last signature on the contract may end up being a day on a weekend or holiday.
In both of these scenarios, the usual solution is an addendum to the contract extending the closing date to a more appropriate date.
Well, sometimes the need to extend escrow is a result of an issue that is due perhaps to some prior unknown or undisclosed issue, which many times creates stress, mistrust, or frustration for the parties at hand. It may be the case where by the time you get to the point where it is discovered that an extension is needed, one or more parties have been put through alot, and signing another document may at that point seem like the straw that broke the camel's back, resulting in a cancelled transaction.
Having to avoid drawing up an addendum and one less piece of paper that needs to be agreed to and signed may just save your next transaction.
The solution? Easy-breezy!
Just use the following phrase in the close-of-escrow date field:
"First business day XX days after acceptance"
This will take care of any issue of a closing take taking place on a weekend or holiday.
And if it's been a bumpy, emotional process to head towards a closing, having to avoid getting another piece of paper signed by all parties may end up saving your next transaction that takes a "dramatic" course.
Hope this little tip ends up with your academy award being an escrow check in place of a cancellation form!
Watch for my next helpful tip in my "Ralph's Helpful Tips" Series.
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