What is a Closing Date?

A closing date is the end date of the negotiations of a home when the ownership of the home transfers from the first owner to the new purchaser. It is the light at the end of the tunnel for the entire process of buying a new home.

When an individual makes an offer on a home that he or she wants to buy and the offer is accepted by the current owner, the parties involved will sign either a Purchase Agreement or a Purchase and Sales Agreement. This is a binding contract between the parties and contains any contingencies and stipulations the buyer may require on the home.

Once the seller and buyer agree on all of the terms, contingencies, and stipulations, the two parties must agree on a closing date. The closing date is the date by which the former owners must be out of the house in order for the new owners to take full custody of their new home. When selecting a closing date, it is important to take into account a variety of things that require time.

First, applying for a mortgage. This works for both sides as it is likely that the old owners will need to have time to apply for a mortgage for their new home. Another thing to keep in mind is the time it could take the current owners to find a new home and agree on that information. In addition, the new buyers must have time to sell their current home. A property inspection, title report, and a variety of other things must also be considered.

When forming the purchase agreement, it is imperative not to allow one party the ability to change the closing date, in any direction, unilaterally. It could be a good idea to allow the two parties to push back or move up the date if they both agree to it. Bilateral agreements are much better in that no party is likely to be left out.

Once the closing date and all contingencies have been met, a person is ready to move into his or her new home.

Contact an Austin Realtor

If you are house hunting in the Austin area and need some assistance in finding your dream home, contact an Austin realtor from The Carvajal Group at 512-419-7770 today.