During the contract negotiation phase, you (the buyer) and the seller set a closing date, which must be listed on the purchase agreement contract. After the seller accepts your offer and earnest money—money given to secure the contract—you'll likely wait a while before your actual closing date.
Once the closing agent confirms with the lender and the seller, he or she will set a final date, time and location of the closing. On closing day, all of the behind-the-scenes work is complete.
Builders can set the closing process up to 60 days from the estimated completion date. During this time, you'll want to shop around for a homeowners insurance policy, which your lender will require. Buyers may consider locking in their mortgage rate during this phase.
Your lender is required to send you a Closing Disclosure that you must receive at least three business days before your closing. It's important that you carefully review the Closing Disclosure to make sure that the terms of your loan are what you are expecting.
You can back out of buying a house any time before closing. However, you'll likely face penalties — including possibly being sued — if the purchase agreement has already been signed and you're backing out for a reason that isn't listed as a contingency in the purchase agreement.
This three business-day rule was introduced in October of 2015, and it applies to both original mortgages and refinancing. When your three business-day waiting period starts is determined by your consummation day. This three business-day rule may include Saturdays, but it does not count Sundays or holidays.
When you sign your purchase agreement, the closing date is set — but that's only an approximation. Your closing date will be officially set by the attorney handling the transaction. Between signing the purchase agreement and handing over the keys to the new owner, you may experience a change in the closing date.
Who decides on the completion date? The completion day is agreed in advance between the seller and the buyer. It's normally on a weekday, because the money transfer and confirmation need to be done by a conveyancing solicitor, and you'll need to pick the keys up from the estate agent.
From the time the contract is accepted, the closing process will generally take around 60 days. If something comes up in that time that leads one or both parties to want to reschedule the closing, that can be done, but it requires coordination and agreement from all parties involved.
While any party involved in the transaction can suggest a closing date, the buyer's lender often drives the timeline due to federal regulations requiring a minimum review period for documents.
Some buyers may be able to negotiate an immediate possession date. This means as soon as the transaction is closed and the deed is recorded, the buyer can move in. A few other common buyer possession dates may be 15 days, 30 days, 60 days, or even 90 days after closing, depending on how much time the seller needs.
How do you determine the timeline for closing a deal? Ask the prospect when they need to achieve their goal and work backwards from that date to determine when they need to sign the contract.
At the closing, the ownership of the property is transferred to the buyer from the seller. Closings are typically a collective effort scheduled by your your settlement attorney/agent and lender. They'll schedule the closing for a time that is convenient for both you and your real estate agent, so that all may attend.
The closing date is another negotiable aspect of a home purchase. Depending on your specific circumstances, you may want to close the deal quickly or need more time to make the transition. Negotiate with the seller to find a closing date that works for both parties.
A specific closing date or a closing set for “on or about” a specific date does not necessarily mean that that date is the day you will actually close on your hew home. Unless the contract specifically states the date is “time of the essence,” both parties are entitled to a reasonable adjournment.
The buyer and seller agree the completion date, along with other parties if there's a chain. Although the completion process is different if you're buying a new build home. Completion day traditionally has to be on a working weekday, to enable the money transfers through the bank and so your solicitor is available.
Pulling out after the exchange of contracts is not advised as both parties are committed to the transaction. It's not common for either party to pull out at this stage as they will be liable for legal action as it is seen as a breach of contract. This can lead to various financial consequences.
The Completion Date is determined when the contract is signed and can be adjusted through accepted compensation events. This is the date the contractor must aim to complete all the work stipulated in the contract to avoid liability for delay damages.
The closing date is set after your mortgage loan has been approved and you accept the commitment letter. Your agent will coordinate this date with you, the seller, your lender, and the closing agent.
In most contracts, both parties must agree to any extension unless the contract specifies that one party has the right to extend unilaterally under certain conditions. The contract may specify penalties for failing to close on time or remedies if the other party is at fault for the delay.
“In some cases, you can close earlier if you are willing to pay for a rush appraisal or if you work with your loan originator to be fully preapproved prior to executing your real estate contract,” Tolbert adds.
The 3-day waiting period begins with the delivery of the closing disclosure document to the borrower. This critical time frame allows borrowers a dedicated window to review the terms, costs, and conditions of their mortgage before committing to the closing.
The California Purchase Contract is chock-full of deadlines: three days to place a deposit into escrow; 17 days to perform investigations; scheduling utilities, organizing closing, and many other important details.
In most cases, home buyers and sellers do not meet face-to-face until their closing date. Real estate agents see a number of risks in introducing buyers and sellers, so they generally prefer to handle all of the communication until it's time to close on the home.