Question regarding closing on a house

6 years ago

My friend has a contract on her home. She's moved out of the state (Texas) where the house is and is returning for the closing.

The buyers cannot be at the closing until after 4 pm on Friday.

Monday is a holiday, which means the loan & paperwork won't post at the lender until Tuesday.

Does this mean that the funds for the sale will not be given to the seller until Tuesday?

If so, should the buyers have access to the home, that is, given the keys and able to move in, even though the seller doesn't have the funds?

Thanks!

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Comments (4)

Lisette Mauch
6 years ago
last modified: 6 years ago
If the contract says the buyers get possession at closing, my understanding would be yes.

And the seller should confirm timing with the closing company and their real estate attorney.

when we bought our house I believe the closing company required our check to be there 72 hours before closing or something so funds were fully verified. As soon as we finished signing papers and they faxed the signed copies they began cutting checks and the seller left closing with theirs.
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sushipup1
6 years ago
In our old state of California, "closing" meant when papers were filed at the courthouse, after signing. Here in PA, "Closing" refers to signing papers.

So it depends on what the state laws are.
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Denita
6 years ago
last modified: 6 years ago
If the buyers are closing on Friday at 4 pm, the funds should have been wired to the title co or the closing attorney the day before closing so the closer can disburse the day of closing after the final paperwork is signed by the buyers.

The seller can pre-sign their paperwork.

In my state it is common for the seller to sign first and then the buyer. It is extremely rare for all parties to be in the room together any more.

The title company, or closing attorney, can wire the funds to the seller.

Speak to the title company to find out the closing procedure for that specific title company. There are two basic types of closings: table funding states and escrow states (9 states). Discuss specific funding requirements with the title company now so your friend knows what to expect.

In my area, because we are a table funding state, the closing documents are signed and the funding is the same date. It is extremely rare that we would have a "dry closing". Even then, all the funds would be in the title company's account ready to disburse and the only hold up was the funding number to be issued by the bank funding the purchase for the buyer. If there is any other reason for not having the funds, then the buyers don't get the keys and they don't get to occupy the property. It is an exchange of money for the deed here.

That's why I said to check with the title co that is closing this sale. They will know what is typical for that area.
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User
6 years ago
What Denita said. I had to wire good funds to the closing agent prior to transfer of title.
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