Who determines the closing date?
I’m wholesaling a deal.
The contract states that we close “ON OR BEFORE” February 15. How is this determined? Do I determine the exact closing date?
Is it the new buyer that determines the exact closing date, the title company, or myself?
Most Popular Reply
The title company coordinates the closing date with the end buyer and the seller. We typically first determine when the buyer intends to fund the deal and work around that tentative date (it often changes).
Unless the seller has some issue (travel, availability) that requires a pre-sign, there is generally no point in having a seller sign docs until the deal has been funded. In my opinion pre-signing can cause more problems than it solves, especially with wholesalers involved.
Most settlements since COVID hit are split... meaning buyer and seller close separately in that order.
- Tom Gimer
The title company coordinates the closing date with the end buyer and the seller. We typically first determine when the buyer intends to fund the deal and work around that tentative date (it often changes).
Unless the seller has some issue (travel, availability) that requires a pre-sign, there is generally no point in having a seller sign docs until the deal has been funded. In my opinion pre-signing can cause more problems than it solves, especially with wholesalers involved.
Most settlements since COVID hit are split... meaning buyer and seller close separately in that order.
- Tom Gimer
You tell title the day you want to close and get the seller on board.
It's typically the buyer who determines the closing date because they are funding the deal. Sometimes, let's say, the buyer is having an issue funding escrow during the initial agreed closing date; at which time, there is a possibility
that the date might change only if the sellers agrees to it. If seller agrees to grant an extension on the closing date, then all parties would need to sign an addendum commencing the new closing date and provide it to the title agency.
I agree Tom, pre-signing can cause more problems, especially if the deal falls through for whatever reason. It generates calls from the seller to the title agency wanting to know what happened, as they have already signed the documents.
Work with the buyer and seller and then coordinate with title accordingly.
Since you have on or before Feb 15th you have flexibility in the closing date BUT you need to make sure you give title enough notice before hand because they usually need to have things in place on their end before closing…title report ect
Buyer usually determines this unless seller has a certain day in mind and that helps you with your offer.