What is '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.
BREAKING DOWN '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.