Posted by Julie Smith on 8/1/04 9:22am
Msg #5311

Dry Close/Wet Close

Can someone explain to me what these 2 types of purchases are? I have been doing this for about 2 years now and have never had someone ask me if I have experience in Dry Close and Wet Close purchases.......

Reply by PAW Notary Services on 8/1/04 10:22am
Msg #5312

Dry closing = no money exchanged at the table
Wet closing = monies collected and disbursed at the table

Unless other arrangements have been previously made, when the seller signs the deed, they expect payment (settlement) right then and there. The settlement company (usually the title company) should have everything all set with checks made out, dated and signed for disbursing the funds. The buyer/borrower executes their note and the funds are held in an escrow account for the settlement company to make the disbursements.

Typically, in refinances, collecting "funds due at closing" from the borrower doesn't constitute a wet closing as payoffs are not disbursed.