Timeline to Closing - when are things due

[Stephen Brown]

Hi all,

We recently settled on a 101 multifamily property in Ohio. Throughout the process things were a little bumpy.

One thing I found was we didn't seem to have a timeline process. We had a very extensive due diligence checklist as well as a checklist of of things to do to get to closing.

It all got done but I hope for our next deal that it would go smoother.

What I would like to find out if any of you can share a timeline for your due diligence item groups as well as timeline of things to be done to get to closing.

I hope that if I have a better clue as to when things should be done that things can go smoother next time.

Any help would be appreciated.

Thanks.

[Enrique Huerta]

@Stephen Brown ,

Typically, the PSA will spell out the most critical dates and then it is up to you to put them on your calendar or use an internal tracking system.

Typically Timeline from my experience:

Signed PSA = Open Escrow

Initial Deposit = Due within 3-5 Business Days after Escrow Opens (subject to negotiation)

Seller to delivery DD Items = Due within 5 Business Days after Escrow Opens

Preliminary Title Report = Due within 5 Business Days after Escrow Opens and then you can negotiate how many days you have to object to any findings.

Due Diligence = Due within 30 Days; Can be negotiable

2nd Deposit Due = Upon removing DD Contingency

Appraisal = 45 Days after Escrow opens

Loan = 60 Days after Escrow Opens

Close Escrow = 60 Days

Extensions = To be exercised 15-30 days in advance of initial closing date (to be negotiated)

I recommend you create a calendar, or use Folio as a Gmail add-in to keep track of your timelines.

The main issue is that each deal has it's own timeline and you must be flexible in negotiations. I've seen deals where the DD is 14 Days or less and closing occurs 45 days thereafter or less.