Also known as: house closings · real estate closing · property closing · closing
Written by attorneys · grounded in primary & secondary sources — see below
The final stage of a real estate transaction in which the buyer pays the purchase price and the seller delivers the deed conveying title to the property.
Hannah Hughes agreed to purchase a residence from Hector Huerta. On the scheduled closing date an unreleased lien appeared in the title search. Hughes refused to tender payment and demanded rescission because the seller could not deliver clear title.
Hassan Hakim sold his home to Harper Hill. After the deed was delivered and funds exchanged at closing, Hill discovered that the seller had failed to repair the roof as promised in the contract. Hill could not enforce the repair promise because the contract merged into the deed.
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Helena Hoffman contracted to buy land from Harmony Retail. The title report revealed an unrecorded easement across the parcel. Hoffman declined to proceed with the house closing because the seller could not cure the defect by the closing date.
Hakim Hall signed a contract to purchase a house from Haven Medical. Before the closing date a fire destroyed the structure. Hall remained obligated to pay the full purchase price at closing because risk of loss had already shifted under equitable conversion.
Harper Hill entered a binding contract to acquire property from Hannah Hughes. Two weeks later a storm damaged the roof. Hill had to complete the purchase at the scheduled house closing and could not reduce the price or rescind.
Hector Huerta contracted to sell a residence to Helena Hoffman. A fire occurred after contract formation but before closing. The seller held the insurance proceeds in trust for the buyer, who still had to close and pay the contract price.
The seller must deliver title free from reasonable doubt so that a reasonably prudent purchaser with full knowledge of the facts would accept it. Recorded liens, gaps in the chain of title, or outstanding easements that the seller cannot cure by closing allow the buyer to refuse performance.
Merger extinguishes contractual promises that relate to title once the deed is delivered. Promises concerning the physical condition of the property do not merge into the deed absent clear intent and remain independently enforceable after closing.
Under the majority rule of equitable conversion the risk passes to the buyer at contract formation. The buyer must still pay the full price at closing even though the improvements no longer exist.
A buyer may still refuse if the title is uninsurable at standard rates. Insurable title is an alternative standard that is sometimes less strict than full marketability but still obligates the seller to deliver a title a reputable insurer will cover.