Real Estate Transaction Completion Date Review

Agreement of Purchase and Sale “Real Estate Closing Date”

This article will explain what you can expect during the closing process from the moment your offer is accepted until you get the keys to your new home with specific reference to the closing date.

One of the main clauses of the agreement is “Completion Date” reads as “The Completion Date states “this agreement shall be completed by no later than 6.00 PM on the ———–day of ——–. Upon completion, vacant possession of the property shall be given to the Buyer unless otherwise provided for in this agreement.”

“Time is the essence” is a legal doctrine whereby performance of a contract is required by a specific date and often by a specific time. This simple provision provides for added certainty in defining the rights and obligations of the sellers and buyers, particularly when it has been negotiated and expressly made a part of the contract.

I have seen in my Real Estate Law practice that many buyers who are selling and also buying their house on the same date experience difficulties and the entire process becomes stressful for them. Any delay in the completion of one transaction affects the other transaction, in terms of extra penalty, extra cost of the movers and the worst you may be out of your home if the sale of your house is complete and your buying transaction falls on the next day or next day after weekend. It is always a good thought to give you a few days time between your sale-purchase transactions. When you are buying and selling your homes, you may want to consider taking a bridge loan for your buying. You would realise paying a little extra few hundred dollars more, if you are also selling your home, on bridge loan would be stress free and inexpensive than holding up moving trucks and camping in hotels. Besides, you’ll have added peace of mind when everything is not getting clubbed together. I would invariably suggest separating the two deals scheduling completion on different dates. Don’t make them dependent; make them independent of each other.

Do not hesitate calling me or having an appointment before you finalize your deal or financing.

Please note that the information in this newsletter is not legal advice rather are some ideas sharing with the readers. However you are welcome to discuss your situation with me after having an appointment.

Call us @ 905-290-7205 for more information.