What Is a Dry Closing?


dry closingSo you show up for your closing with your attorney and sign all the documents required to purchase your home. The sellers are there with their attorney as well. After two hours of signing documents the lender’s attorney informs you that he has not yet received the funds in his account (usually this is wired to him upon final approval of various signed closing documents). He announces that because it is now 5:15 in the afternoon that he may not hear back from them until the next morning. In order to avoid having all parties reschedule and sign all documents again another day, we can usually work out what is known as a dry closing. All parties will sign an agreement stating that the deed will not be released for recording until the seller’s attorney receives the sale proceeds. In the event the funds are not made available by the next business day, the transaction will be considered void and the deed returned to the seller’s attorney by the title company.

 


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