- 13 Points to Keep in Mind
- 9 Reasons to Use a Broker
- Initial Consultation
- Listing
- Marketing
- Offer
- Due Diligence
- Escrow
- Closing
Closing
Close of Escrow (COE) officially takes place after the escrow company has executed all escrow instructions and made all disbursements. Before that happens, several things must be completed, some of which are also commonly referred to as "closing".
Signing
Signing occurs when both parties sign escrow's final instructions and closing documents. This usually occurs in the title company's office on the day of close, but can be handled otherwise. For example, Business Advisors Network can work with you to handle signing at a location and time that are more convenient for you, and signing is frequently completed in advance.
Funding
Funding must also be completed before escrow can close. The buyer's final deposit must be deposited in escrow several days prior to closing. If a third-party loan is involved, these funds must also be deposited in escrow in accordance with the lender's instructions, typically on the same day as close.
Change of Possession
Change of physical possession is referred to as Change of Possession (COP). This can take place on the same day as signing, but frequently takes place on another day. For example, signing can be completed the day prior to COP, or even several days in advance leaving only COP to effect the change of ownership. Change of possession is oftentimes a very busy day. It may involve inventory valuation, account changeovers, POS changeover, franchise assignment, license/permit changeovers, inspections, employee meetings, and more.
Inventory
Inventory is valued at change of possession. Arrangements are made ahead of time for you and the buyer, and/or an inventory service, to take a physical inventory. The value of this inventory is agreed upon by both parties and reported to escrow for its final calculation of disbursements.
Closing Date
The official "closing date" is the date escrow closes, although this term is often used to refer to the "signing date" or the "change of possession date". All disbursements will be made and title will be transferred. This typically completes your sale.