Dry Closing

AAA

DEFINITION of 'Dry Closing'

A type of real estate closing in which the entire closing requirements are fulfilled except the disbursement of funds. In a dry closing all involved parties agree that the closing can still happen and the funds are transfered as soon as possible following the closing. A real estate closing is the completion of a transaction involving the sale or exchange or real estate. In a traditional closing, the title to the property is transferred to the purchaser and all finances pertaining to the purchase are settled.

INVESTOPEDIA EXPLAINS 'Dry Closing'

A dry closing occurs usually when there has been some type of delay in the funding of the loan required for a real estate transaction. Usually funds have been approved and are fairly guaranteed. While a normal closing usually includes necessary paperwork and the exchange of funds, a dry closing is performed with no exchange of funds. This could take a couple days or even a couple weeks for the funds to be deposited.

RELATED TERMS
  1. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  2. Escrow

    A financial instrument held by a third party on behalf of the ...
  3. Adjustable-Rate Mortgage - ARM

    A type of mortgage in which the interest rate paid on the outstanding ...
  4. Mortgage Broker

    An intermediary who brings mortgage borrowers and mortgage lenders ...
  5. Mortgage Banker

    A company, individual or institution that originates mortgages. ...
  6. Mortgage Originator

    An institution or individual that works with a borrower to complete ...
Related Articles
  1. 12 Steps To Closing A Real Estate Deal
    Home & Auto

    12 Steps To Closing A Real Estate Deal

  2. Top Tips For First-Time Home Buyers
    Home & Auto

    Top Tips For First-Time Home Buyers

  3. Closing A Real Estate Deal In A Down ...
    Home & Auto

    Closing A Real Estate Deal In A Down ...

  4. Simple Ways To Invest In Real Estate
    Home & Auto

    Simple Ways To Invest In Real Estate

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center