Recently several agents have asked what the closing date in the contract means. Most real estate contracts state that the transaction will “close on or before” a date. But what happens if the buyer or seller wants to close before the date in the contract? After all, it does so “on or before.”
The date that controls is the date written in the contract. The transaction can be closed earlier if both parties mutually agree to the earlier date. If they do, the closing can occur and no addendum is needed. However, if one party refuses the move the closing to an earlier date, the other party cannot force the earlier closing. The reason is that a party cannot be held in default until they miss the closing date in the contract. Therefore, if your client wants to close earlier than the date in the contract they are going to have to have the other party’s agreement.
In case you missed it this week, the Wofford Terriers went into Chapel Hill and beat the seven time and current Defending National Champion North Carolina Tarheels. The 5th rank Tarheels don’t lose at home and certainly not to a small school like Wofford. To put this into perspective Clemson has played in Chapel Hill sixty times over the years and never won there. It is one of the toughest environments in the country to win. Congratulations to Mike Young and the Terriers on a historic win!
Blair Cato wishes you a Merry Christmas, Happy Holidays and safe New Year!
Photo by DafneCholet