Closing of the Real Estate Contract

Closing of the Real Estate Contract

A real estate transaction can be initiated in two ways. Either the buyer makes an offer to the seller to buy his house or the seller makes a proposal to the buyer to sell his house. This is how a real estate transaction starts and is closed when the expectations of the buyer and the seller involved in the real estate deal are fulfilled. There can be the two results of initiating a real estate contract. Either the contract is closed successfully or it is terminated because of the conditions not satisfied. There are some important facts regarding closing of the contract that need to be understood by both the parties.

Important facts regarding successful closing of the contract

The date at which a real estate contract is closed is known as the closing date. At the closing date, both the parties agree to perform all their promises as written in the agreement. A buyer pays the total price to the seller that includes the price of the property and of any other personal property if included with the main property. In return, the seller signs the agreement to transfer his ownership of the property to the buyer and from then the buyer will be considered as the legal owner of the property.

The buyer could take possession of the property at any time after deal is closed successfully but a definite time and date to take possession by the buyer should be specified in the contract. The buyer can give time of few days to the seller to take possession after the closing date so that the seller can use this time to shift to some other place with his family. The exact time and date of possession wrote in the agreement should be agreed to both the parties.

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Termination of the contract

Leaving out those cases when the buyer enters a contract with an intention of terminating, all the other contracts of the real estate industry expects a successful closing. The successful closing of the contract is expected by the buyer and the seller in the beginning but it is not possible for all the contracts to close successfully. Many contracts do not reach a successful closing point but are terminated because the conditions of the contract are not satisfied. The condition of the termination arises when the views of the seller and the buyer conflicts on an issue. Termination of the contract is not easy and the parties must take help of a real estate lawyer in this matter.