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.
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