Realtor® Attorney Joint Committee

Best Practices for Closing on a Florida Property

By: Mallory Bauer, Esq., Berlin Patten Ebling PLLC

With the real estate market in the SarasotaManatee area continuing to break records, the amount of closings I handle seems to increase monthly. With the volume of closings that we’ve seen, every new closing presents a new learning opportunity. Below is a non-exhaustive list of some of the most important issues to address when working with buyers and/or sellers. Some of these tips can make the difference between a happy closing and an unhappy closing:

1 | Simultaneous Closings: A simultaneous closing occurs when a buyer’s purchase is dependent upon their home sale occurring on the same day. It is important to educate your buyers that a simultaneous closing, while seemly synchronistic, may come with additional stress if the first closing gets delayed and now the buyer does not have the funds to close as expected. 2 | Mail-Away Closings: If you are working with a seller or buyer that will not be present for closing, it is important to inform the client of the process of a mail-away transaction. If the buyer is financing, they might be signing documents on the closing date and the seller might not receive their closing proceeds until the following day when the original documents arrive at the closing agent’s office. Make sure to set expectations with your clients upfront as to not have any last-minute hiccups. 3 | Closing Dates: Avoid closing dates that are the last business day of the month or on a Friday. Most closings take place on a Friday or on the last business day of the month. Take the time to look at the calendar when the contract is being drafted. Pick a Tuesday or Wednesday closing date in the middle of the month; your client(s) will get an exorbitant amount of attention and never feel rushed. 4 | Making the Final Wire Transfer: When a buyer is bringing their final cash-to-close to the closing agent, the funds will typically need to come in the form of a wire; some closing agents might have exceptions. Buyers should be advised of the fact that funds need to be deposited in the closing agent’s account by closing day, and sometimes, dependent upon the bank, wires can take minutes, hours, or days. Discuss where the funds are coming from as to avoid any delays. 5 | Conduct a Final Walk-Through: Always advise your buyers to conduct a final walk-through.

If the buyers states that they do not require one, make sure they sign a walk-through form indemnifying you as a real estate agent, so you are not on the hook if something is broken when they visit their home for the first time after purchasing.

The above lists just a few of the best practices to abide by in order to have a smooth and happy closing. The real estate market is ever-changing, and as real estate professionals, we have to quickly adapt and ensure that our clients’ expectations are always met. •

This article is meant for educational purposes only. It is not intended to serve as legal advice and should not be used as a substitute for consultation with an attorney.