preclose

Preclose refers to a period of time and a set of activities that occur just before a real estate transaction closes. It is a crucial phase that ensures all parties are ready for the final transfer of ownership. During preclose, various tasks are completed to finalize the deal. This typically involves the buyer's lender performing a final loan underwriter review, confirming that all conditions for funding have been met. The title company or closing attorney will prepare the final closing documents, including the deed, mortgage note, and settlement statement, which details all financial aspects of the transaction.

Buyers may conduct a final walk-through of the property to ensure it is in the agreed-upon condition and that any agreed-upon repairs have been completed. Sellers will typically gather any necessary documentation, such as appliance manuals or home warranties, to hand over to the buyer. Both parties will need to arrange for the transfer of utilities and ensure all outstanding bills are settled. Communication is key during preclose, with real estate agents, lenders, and attorneys working together to address any last-minute issues that may arise. A successful preclose period smooths the path to a timely and efficient closing, minimizing potential delays or complications.