Definition
The closing date is the day in which a real estate transaction takes place according to the terms of the buyer, seller, lender and any other involved parties. The closing date on a credit card is the last day of the billing cycle, and may also be called the statement date.
Analysis
A credit card closing date is simply the cut-off in which transactions are listed on a statement. Any subsequent transactions would appear on future statements.
The closing date also refers to the actual sale date on real estate. Once a buyer and seller come to an agreement on terms for a real estate sale, the buyer must arrange for a number of other related transactions to occur. These can include:
- acceptance of mortgage application
- complete terms of mortgage loan:
- appraisal
- title search and registration
- approval for insurance coverage and payment of first year’s premium
- payment of property tax and real estate transfer taxes
- certified check for down payment and/or closing costs
Usually the buyer and the seller will meet with a real estate attorney on the closing date in order to review the final terms of the sale, to sign all related documents and to complete the transaction. The seller will usually turn over the keys to the home at this point.
If the required preparations are not made, the closing may not proceed. In some cases, one party must make arrangements that day so that closing may proceed, or the deal may be off. If the transaction does not occur that day and all parties agree, then a new closing date could be set.
