Running the Closing

• Author: Gregory M Stein - Michael D Goodwin - Morton P Fisher Jr
• Pages: 347-358

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.

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