THE DANGERS OF A QUICK CLOSING
Risk to the Buyer
- 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
- 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.
Pranav Khemka, Barrister & Solicitor
Suite 202, 5403 Crowchild Trail NW, Calgary, AB T3B 4Z1 | T: (403) 457-9577 | F: (403) 457-9578
LEGAL: The Thursday Tidbit provides general information and does not constitute legal advice. Circumstances may vary and no lawyer-client relationship is established from the use and reliance of this information. You are strongly advised to seek any legal advice by directly contacting Khemka Law or counsel of your choosing. Khemka Law does not warrant or guarantee the quality, accuracy or completeness of any information found within this Thursday Tidbit.