A closing is where the deed is executed and delivered by the seller, and the buyer tenders payment (usually by certified or bank checks). If a closing date is fixed in the contract, it is only a tentative target date. Failure of either party to close on that date is not a breach of contract. Both are afforded a reasonable time, even beyond the closing date, to perform their respective obligations, unless contract is expressly made “time of the essence.”
- Example : Johnny and Barbara entered into a written contract of sale that specified an “on or about” closing date of July 15. On August 5, Johnny, Barbara and their attorneys all gather together. Johnny brings a certified bank check for the remaining funds required and Barbara signs the deed over to Johnny.