The closing date is the designated date that a sale of property is understood to be final. Closing dates will involve several components that must be addressed and completed in order for the process to be considered final. Sometimes referred to as a completion date, the closing date is significant for both the buyer and the seller. In the event that a realtor is involved in the transaction, the closing date is also an important invent for the real estate professional.
Closing dates mark the point in the transaction process when all important functions associated with the exchange of property are to be completed. This will mean different things to each party involved in the transaction. As such, each party will have specific action items to address in order to ensure the closing date is not postponed for some reason.
In the event of the buyer, there are two important action items to address before he or she is ready for the closing date. First, the buyer will have either secured financing to purchase the property or have cash on hand to secure the purchase. When the buyer is making a cash purchase, it is not unusual for the buyer to use a financial instrument such as a certified check. Second, the buyer will have completed all paperwork necessary to allow the purchase to proceed.
For the seller, the closing date is also significant. Before the closing date can be set, the seller must first accept the offer to purchase that is extended by the buyer. This will sometimes involve investigating the credit history of the buyer, if the seller intends to finance the purchase personally. The seller will also be responsible for presenting legal proof that the property in question has a clear title and that the seller has the authority to enter into a contract to sell the property.
When a real estate professional is involved in the transaction, the realtor will often coordinate the efforts of both the buyer and the seller. To that end, the realtor will work to negotiate a deal that is agreeable to both parties, assist the buyer in verifying the method of financing, make sure the property meets local requirements regarding the sale of property, and prepare the legal documents to complete the sale. The realtor also usually oversees the process of preparing the deed and makes sure that deed delivery to the new owner takes place in a timely manner.