What is a Dry Closing? Release the Keys? What’s your opinion?
In a recent closing I was faced with a decision: should I or shouldn’t I release the keys in a dry closing? I personally decided that it wasn’t advisable for the my seller to release the keys to the buyer without funding. I’ve heard different opinions in this matter.
What would you do in the event of a dry closing? Release the keys or not?
A dry closing occurs when all of the requirements for closing are satisfied except the disbursement of funds. Each of the parties involved come to the agreement that the closing will still occur and the funds are sent as soon as possible following the signing.
This type of closing will generally occur when there is some type of delay in the funding of the loan that is required for the sale. In almost all cases, funds have been approved and are guaranteed which is why all of the normal necessary paperwork is completed. However, you won’t be officially “closed” until the seller has received funds and the deed has been recorded.
So this brings me back to my question of what would you as a realtor or a seller do in an event of a dry closing?