The seller now wants to back out of the contract. Can they force us to release them from the contract?
The real estate closing
The real estate closing or escrow. What is it? I suspect you have heard these words before. In simple terms, escrow is the period when both the buyer and seller are contractually obliged to the deal and what’s left is to finalize the details and securely transfer funds and title. A title company gathers the documents and the funds “in trust” and delivers the documents to the appropriate parties in a trust capacity when all conditions to the transfer have been satisfied. This process with the receipts and disbursements is documented in the “sellers closing statement”, “buyers closing statement” and the HUD statement, which is prepared by the title company.
Time flies. A typical 30 day close goes a lot faster than you think. From inspections to financing, the closing period can be a bit stressful, but the good news is that you’re almost finished with your real estate transaction. Click here to learn the details.
Let’s look at some specific questions sent in by DearMonty readers from across the country. Read more Q&A articles about the “Closing” stage of the Home Selling process:
March 9, 2020
Reader Question: Do buyers pay a fee when buying real estate? Sam D. Monty’s Answer: The answer is, in some cases “yes.” Real estate companies and agents utilize a variety of philosophies to establish the fees they charge for their services. There are flat fees regardless the selling price, limited service fees, percentage of the […]April 29, 2014
Reader Question: my property is for sale. It has been my primary residence for 40+ years. My Realtor wants to know ‘If an offer were made would I be willing to vacate the premises upon the day of closing?” What if I move all my belongings into storage and the buyer backs out of the sale at the last […]December 2, 2013
Reader Question: I recently signed a contract to purchase a home under the agreement that I would allow the sellers 30 days to move out after the closing date. What should I do to protect myself financially against damage to the home in those 30 days? Also, can this be negotiated through the bank at […]September 3, 2013
Reader Question: It is 5 days before closing. Today, the seller notified us the 3 unit building we are buying is legally only a 2 unit building. I do not want to rent an illegal unit, and we need that income to carry the mortgage. On top of that, there is a relative living in […]July 14, 2013
Many real estate transactions end in water-cooler conversations. The closing takes place, but not on the date planned, or money requirements require changes, or the seller took the washer and dryer; or dozens of other possibilities. Ensuring a successful real estate closing is attainable. Many real estate closings take place on time and as agreed. […]May 23, 2011