When are final funds really due?

[cpster]

So we received the closing docs to sign and were instructed to include a cashier's check for the balance due. The projected close date is not until early October though! I asked the closing agent if it could be sooner and it all depends on how quickly both sides get their docs in and how long the title search takes. I know the title search is going to be delayed as someone is out on vacation. The seller's are out of the US, so I am concerned about that too. Guess I was thinking all along that I could wire 48-96 hours before the actual close date like we did when we brought our home. I've written the closing Agent again expressing our concerns, but won't get a reply until Monday. I am wondering what your experiences have been like. Thanks!

 

[Missyrose]

So we received the closing docs to sign and were instructed to include a cashier's check for the balance due. The projected close date is not until early October though! I asked the closing agent if it could be sooner and it all depends on how quickly both sides get their docs in and how long the title search takes. I know the title search is going to be delayed as someone is out on vacation. The seller's are out of the US, so I am concerned about that too. Guess I was thinking all along that I could wire 48-96 hours before the actual close date like we did when we brought our home. I've written the closing Agent again expressing our concerns, but won't get a reply until Monday. I am wondering what your experiences have been like. Thanks!

Typically, if the closing date is that far in the future, it is usually because the seller has a trip to Disney between now and then and cannot close until after the trip is complete.

If the contract says it cannot close "before Oct. XX" then it won't close before that. If instead you're saying October because the language in the contract says it should close within 60-90 days, then you should send back the closing documents and funds ASAP. Talk to your title agent and find out what the situation is.

 

[cpster]

There aren't any future trips pending. I just am uncomfortable with forking over such a large amount of money to potentially just sit there for the next 6-8 weeks. I think the early October close date is the last date we contractually agreed to. We declined to sign the addendum allowing a further extention. Hopefully we can come to an agreement...like us sending back the docs ASAP and then once the seller's docs and title search are in wiring the funds right away.

 

[Missyrose]

There aren't any future trips pending. I just am uncomfortable with forking over such a large amount of money to potentially just sit there for the next 6-8 weeks. I think the early October close date is the last date we contractually agreed to. We declined to sign the addendum allowing a further extention. Hopefully we can come to an agreement...like us sending back the docs ASAP and then once the seller's docs and title search are in wiring the funds right away.

Since there's no impediment to close, I would send back your closing docs and funds right away. It's highly unlikely (though not completely impossible) that it would take your sellers two months to send theirs back. Sellers have to get their closing docs notarized (buyers do not) so that may cause a bit of a delay, but in most cases it's only a day or two. For my last contract, I sent the closing docs and funds back the day I received them, my sellers sent theirs back the next day and two days after that, we were closed.

I hope you have a speedy close!

 

[com_op_2000]

Our contract said closing would happen on 8/8, sent in $$ and docs, and the date of closing occurred 7/26. Only six days after passing ROFR.

 

[JimC]

There are a number of variables affecting closing. I respond with whatever I'm responsible for (as buyer or seller) as quickly as possible and let closing company manage the process. I don't remember having any problems that were not attended to quickly and professionally.

 

[ELMC]

OP, is there specific language in the contract that says that it can't close until October? If not, you may be misreading some of the language in the contract. Typically, contracts include late "must close by" dates so that it gives everybody time to complete all the steps of the process. However, if everything happens according to plan, then typically the contract closes much quicker. I would contact your resale broker and ask them to clarify. Good luck!

 

[Sandisw]

Both times that I bougtht resale, I signed and sent back the closing documents and the funds at the same time, within a week of receiving them.

In one case, we closed rather quickly--in the other one, it took about a month for the seller to get everything in before we closed.

Sure, it was a little frustrating, but he was an overseas sellers, selling 3 contracts at the same time, and waited until he got the paperwork for them all so he could make only one trip to the notary.

But, that is the typical process. Once you here from the broker, you will have clarification on that date.

I have also sold two contracts with delayed closing dates and in both those situations, the closing documents weren't sent until closer to the date. If you have yours now, I would bet that data is just the last possible.

Good luck!