In the real estate sector, there exists several ways of finalizing a sales agreement. The most intriguing one is dry closing as it happens when the buyer does not avail the agreed money on conclusion of the transaction. In the past, it was perceived as strange but today it is widely accepted.

With this kind of transaction, all the necessary procedures of normal transacting are completed while all the parties are present. The purchaser usually signs all the appropriate documents mandated by law in the presence of a personal attorney. The seller can decide whether to transfer or not transfer the house ownership to the buyer.

It is a known thing that lenders are responsible for most delays experienced in availing of finances. They usually have stringent procedures of carrying out this task. The most important being the need to screen documents after completion of the transactions. This makes the whole arrangement delay for several days.

It can also occur when there is reason for the seller to communicate with the lender about the loans approval. This arises when the purchaser is seeking to finance the deal through a program arranged by the government. The seller has the sole power of accepting or rejecting this kind of arrangement. If agreed the government releases the funds according to its own schedule.

Several other unpredictable factors can cause business to be completed this way. The purchaser might fail in availing all the necessary papers in due time thus interfering with the loan’s procession. The banks might also fail to finalize the payment procedures in a short time.

It is imperative to inform all parties at an earlier stage when conditions arise for this kind of closing. This prepares every person to come up with possible solutions to alleviate it. In most cases, the parties‘ legal representatives decide on forming an escrow setup that will see the deal through. They select this option in cases where the money is likely to be availed soon.

At times the Realtor withhold the deal until the funds is delivered. This happens because regaining a property’s title is a long and difficult legal process. Sometimes the financiers fail to provide funds because of a number of technical issues after the ownership status has been changed to that of the purchaser. This brings long legal proceedings.

Today, this way of conducting a transaction is not taken as an indicator of the funding being unavailable. It also does not imply that the purchaser is not interested in the purchase. The delay in funds is usually a small glitch that can be handled.

You can find more info here on these types of real estate closings, then check out our newsletter to receive more real estate information.