KHEMKA LAW-QUICK CLOSING

KHEMKA LAW-QUICK CLOSING


THE DANGERS OF A QUICK CLOSING

Sometimes, the seller wants to sell and the buyer wants to purchase a property very soon after the purchase contract is signed. This can cause issues with closing the deal on time, due to the rush nature of the transaction. Below, I summarize one issue each party can face on possession day, due to a quick closing.

Risk to the Buyer

  1. Mortgage proceeds can be disbursed to the buyer’s lawyer late if the lawyer doesn’t have a sufficient amount of time preparing the Request for Funds and satisfying the bank’s pre-funding conditions. As such, buyers may incur late interest penalties if they are unable to forward the complete Cash to Close to the seller’s lawyer by 12:00 pm on closing day.

Risk to the Seller

  1. The seller is required to provide the buyers a reasonable amount of time to review trust documents, such as the Real Property Report, Statement of Adjustments and Transfer of Land. If the documents are sent too close to the possession day, then the buyers won’t have sufficient time to review the forms and the payment of the purchase price and associate late interest can be delayed - if the buyer doesn’t want possession immediately.

If you have any questions concerning quick closings, please do not hesitate to contact Khemka Law or counsel of your choosing. We are always here to assist you and your clients. Thank you for your time and consideration.

Sincerely,

Pranav Khemka

Pranav Khemka, Barrister & Solicitor

Telephone Number: (403) 457-9577
Fax Number: (403) 457-9578

http://khemkalaw.com/

 

Contact Information

Photo of Stewart J. Lowe &  Associates Real Estate
Stewart J. Lowe & Associates
Real Estate Professionals Inc
202 5403 Crowchild Trail
Calgary AB T3B 4Z1
Direct: 403-850-0669
Fax: (403) 476-7608