Running the Closing

AuthorGregory M Stein - Michael D Goodwin - Morton P Fisher Jr
Pages347-358
347
CHAPTER 8
Running the Closing
§ 8.01 Structure of a Typical Closing
The closing is the event that formally marks the passage of title
from the seller to the buyer. Unlike the purchase agreement and
the loan commitment, which are executory contracts, the deed that
the seller delivers to the buyer at the closing is more than just a
promise of future performance: delivery of the deed operates to
convey the property legally. The closing also provides an oppor-
tunity for all closing conditions to be met simultaneously so that
no party must meet its obligations without knowing whether its
counterparts also will perform.1 As noted in the previous chapter,
the structure of the closing should be designed to meet these two
goals by reminding the parties of the significance of their actions
and by ensuring that all parties perform concurrently.
The purchase agreement and the loan commitment should each
state when, where, and how the closing will occur. These documents
should also clarify how the parties must meet their closing condi-
tions. The closing checklist, which should track these documents,
will assist the parties in closing in accordance with their chosen
method. The next two sections discuss the structure of the closing in
more detail.
ste54861_08_ch08_347-358.indd 347 8/3/16 10:59 AM

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