§9.4 - Conditions to Closing

• Jurisdiction: Washington

§9.4 CONDITIONS TO CLOSING

The purchase agreement should specifically describe all of the conditions to both parties' obligations to close the transaction. These conditions will include all matters that must be satisfied or actions that must be taken before the parties are willing to close (see Section 6 of Form 9-1, included on the CD accompanying this deskbook). Common conditions include the buyer's feasibility study, inspections, title commitment, and survey review, as well as financing.

The purchase agreement will usually call for the buyer to receive a preliminary commitment for title insurance from a title insurance company in preparation for the issuance of a title insurance policy. The preliminary commitment will show all encumbrances and title defects discovered by the title insurance company in its investigation of title to the property. The buyer will review the encumbrances and title defects and advise the seller as to which encumbrances and defects the buyer is willing to accept. The agreement may state that it is the seller's responsibility to clear any encumbrances the buyer is not willing to accept. Sellers will generally resist any provision that requires them to clear encumbrances. If sellers cannot clear disapproved encumbrances, the agreement should permit the buyer to either terminate the agreement or waive its approval of these...