dry closing

Definition

A closing where documents are signed but funds aren't immediately disbursed, with actual money transfer occurring later. The real estate equivalent of paying with a check instead of cash.

Example Usage

Due to the wire transfer arriving late Friday afternoon, they proceeded with a dry closing and funded on Monday.

Origin

Industry term distinguishing from 'wet closings' where funds are disbursed simultaneously with signing

Fun Fact

Some states prohibit dry closings to prevent fraud and ensure all parties actually receive their money.

Source: Real estate closing and settlement terminology

Related Terms

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effective gross income

Total potential rental income minus vacancy losses and credit losses, representing what an investment property actually generates. Reality's sobering answer to your optimistic rental projections.

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deed restriction

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appraise

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broker price opinion

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