What Happens Between Contract and Closing in Georgia?

Getting an offer accepted is an exciting milestone in buying or selling a home. But signing a purchase agreement is not the end of the transaction. It's the beginning of an important process that takes the property from under contract to officially sold.

In Georgia, the period between contract and closing typically involves earnest money, property inspections, due diligence, mortgage approval, an appraisal, title work, and final preparations for transferring ownership.

Whether you're purchasing a Midtown Atlanta condominium, selling a home in Buckhead, or buying in Brookhaven or Virginia-Highland, understanding this process can help you avoid surprises and prepare for closing day.

Here's a step-by-step guide to what happens after a home goes under contract in Georgia.

1. The Purchase Agreement Becomes Binding

Once the buyer and seller have reached an agreement and the required acceptance has been communicated, the transaction enters the under-contract stage.

For transactions using Georgia Association of REALTORS® forms, the Binding Agreement Date is particularly important because various contractual deadlines may be calculated from it.

The purchase agreement generally identifies:

• The agreed purchase price
• Earnest money requirements
• The due diligence period, if applicable
• Financing and appraisal contingencies, if included
• The closing date
• Possession arrangements
• Other negotiated terms and exhibits

Your real estate agent should review these deadlines with you immediately. Missing a contractual deadline can have significant consequences.

2. The Buyer Delivers Earnest Money

Earnest money is a deposit made by the buyer as part of the purchase transaction.

The amount, payment deadline, and designated holder are established by the purchase agreement.

The funds are generally held by an authorized escrow holder and, when the transaction closes, are typically credited toward the buyer's purchase obligations.

For example, if a buyer purchases a home for $500,000 and deposits $5,000 in earnest money, that $5,000 will generally be accounted for on the closing statement rather than paid a second time.

Whether earnest money is refundable depends on the contract, applicable contingencies, the reason for termination, and whether required procedures and deadlines are followed.

Important: Buyers should not assume earnest money is automatically refundable whenever they decide not to purchase the property.

3. The Due Diligence Period Begins

One of the most important stages of a Georgia real estate transaction is the due diligence period, when one is included in the contract.

Under commonly used Georgia Association of REALTORS® purchase agreements, a negotiated due diligence provision may give the buyer the contractual right to terminate during the specified period, provided the buyer follows the required notice procedures.

The length of the period is negotiated between the parties. It is not a universal number of days established for every Georgia home sale.

During due diligence, buyers commonly investigate:

• Property condition
• Potential repair needs
• Roof and HVAC systems
• Plumbing and electrical systems
• Water intrusion or drainage concerns
• Neighborhood or property-specific restrictions
• Condominium or HOA documents, when applicable

Buyers should schedule inspections promptly so there is sufficient time to review the findings and negotiate any concerns before the deadline.

4. Home Inspections Are Completed

A professional home inspection helps the buyer better understand the property's condition.

Inspectors typically evaluate accessible components of the home, including structural elements, roofing, plumbing, electrical systems, heating and cooling equipment, and other visible conditions.

Depending on the property, additional inspections may be appropriate, such as termite, sewer, mold, structural engineering, or other specialized evaluations.

For condominium purchases, buyers should understand the distinction between components maintained by the individual owner and those maintained by the condominium association.

An inspection is not a guarantee that every defect will be discovered. However, it can provide important information before the buyer proceeds.

5. Buyers and Sellers Negotiate Inspection Concerns

If an inspection identifies concerns, the buyer may request repairs, a price adjustment, or another negotiated solution.

For example, an inspection might reveal an aging HVAC system, a plumbing leak, or an electrical issue requiring further evaluation.

The buyer and seller may agree to:

• Have specified repairs completed
• Adjust the purchase price
• Provide a permitted closing-cost concession
• Accept the property in its existing condition
• Terminate the agreement if a contractual termination right remains available

Repair requests and concessions are negotiable. A seller is not automatically required to agree to every inspection request.

Any agreement should be properly documented in writing using the appropriate contractual amendment.

6. The Buyer Moves Forward With Mortgage Financing

While inspections and due diligence are underway, the buyer's lender continues processing the mortgage application.

Even a buyer who has already received preapproval may need to provide updated documentation.

The lender may request:

• Recent pay statements
• Bank and investment account statements
• Employment verification
• Tax returns or other income documentation
• Explanations of certain deposits or financial transactions
• Additional documents required by underwriting

During this stage, buyers should avoid major financial changes without consulting their lender.

Opening new credit accounts, financing a vehicle, changing employment, or moving substantial funds may create additional underwriting questions.

7. The Property Appraisal Is Ordered

When mortgage financing requires an appraisal, the lender arranges an evaluation of the property's value.

The appraiser considers relevant market evidence, including comparable property sales, property characteristics, condition, and location.

Three common outcomes are:

• Appraisal supports the purchase price: The transaction generally continues through the remaining financing process.
• Appraisal exceeds the purchase price: The transaction may proceed without a purchase-price adjustment.
• Appraisal falls below the purchase price: The buyer and seller may need to evaluate available contractual options and financing requirements.

A low appraisal does not automatically require the seller to reduce the price or give the buyer an unrestricted right to terminate.

The applicable financing and appraisal contingencies, their deadlines, and the loan terms determine the available options.

8. The Closing Attorney Begins Title Work

Georgia real estate closings are conducted by attorneys.

The closing attorney coordinates the legal closing process, including reviewing title information, preparing applicable closing documents, and overseeing the transfer of funds and ownership.

The title examination may identify matters such as:

• Existing mortgages
• Recorded liens
• Judgments affecting title
• Easements
• Other recorded restrictions or title concerns

Any issues affecting the seller's ability to deliver the title required by the contract generally need to be addressed in accordance with the purchase agreement.

Buyers should also understand the available title insurance coverage and whether separate legal representation is appropriate for their circumstances.

9. Condominium and HOA Documents Are Reviewed

For buyers purchasing a condominium or a home within a homeowners association, additional documentation may be important.

Depending on the property and contract, buyers may review:

• Association governing documents
• Current HOA assessments
• Rules and regulations
• Annual budgets
• Available financial statements
• Reserve studies
• Pending or approved special assessments
• Rental restrictions
• Parking and storage arrangements

For Midtown and Buckhead condominium buyers, understanding the building's financial condition and ownership restrictions is especially important.

Association documents may also affect lender approval.

Buyers should confirm which documents they are entitled to receive and any applicable review or termination deadlines under their agreement and Georgia law.

10. The Buyer Secures Homeowners Insurance

Buyers obtaining mortgage financing generally need to arrange appropriate property insurance before closing.

For detached homes, this usually involves a homeowners insurance policy acceptable to the lender.

For condominiums, buyers should understand the relationship between the association's master insurance policy and the individual owner's insurance coverage.

The buyer's insurance professional and lender can help determine the necessary coverage.

Insurance costs should also be considered when calculating the expected monthly cost of ownership.

11. The Lender Issues Final Loan Approval

As closing approaches, the lender works to complete underwriting and satisfy remaining loan conditions.

These conditions may relate to income, assets, appraisal, insurance, title, or the condominium project itself.

Once the lender has approved the loan and the necessary conditions are satisfied, the transaction can move toward final closing preparations.

Buyers should stay responsive to requests from their lender, even when closing is only a few days away.

Mortgage approval and the scheduled closing date are related, but a closing cannot necessarily proceed simply because a date appears in the contract.

12. The Buyer Reviews the Closing Disclosure

For most covered residential mortgage transactions, the buyer must receive a Closing Disclosure at least three business days before consummation.

The Closing Disclosure summarizes important loan terms and closing costs.

Buyers should carefully review:

• Loan amount
• Interest rate
• Monthly payment
• Closing costs
• Prepaid expenses
• Escrow account information
• Estimated cash needed to close

Compare the figures with the earlier Loan Estimate and ask the lender or closing attorney about any unexpected differences.

Not every change requires a new three-business-day waiting period, but certain significant changes can trigger additional disclosure requirements.

13. The Seller Prepares the Property for Transfer

While the buyer completes financing, the seller prepares to deliver the property according to the purchase agreement.

This may involve:

• Completing agreed repairs
• Coordinating movers
• Removing personal property not included in the sale
• Preparing keys, remotes, and access devices
• Providing requested payoff information
• Coordinating any agreed possession arrangements

For condominium sellers, preparation may also include providing parking access devices, building fobs, and other items required under the agreement.

The contract determines the seller's obligations regarding property condition and possession.

14. The Buyer Conducts a Final Walk-Through

Shortly before closing, buyers commonly conduct a final walk-through.

This is an opportunity to verify that the property remains in the condition required by the agreement and that negotiated repairs or other obligations have been addressed.

During the walk-through, buyers may check:

• Agreed repairs
• Major appliances included in the sale
• Visible property condition
• Remaining personal property
• Access devices and keys
• Any new damage or unexpected changes

The walk-through is not a substitute for a professional inspection.

If an issue is discovered, the buyer should notify their real estate agent promptly so the parties can address it before closing when possible.

15. Closing Funds Are Verified and Delivered

Before closing, the buyer receives instructions regarding the funds needed to complete the purchase.

These may include the remaining down payment, closing costs, prepaid expenses, and other amounts shown on the final settlement documents.

Wire fraud is an important concern in real estate transactions.

Buyers should independently verify wiring instructions using a trusted telephone number obtained through a previously established source.

Never rely solely on an unexpected email or message requesting that funds be sent to a new account.

The closing attorney should confirm the acceptable method and timing for delivering funds.

16. What Happens on Closing Day in Georgia?

On closing day, the parties complete the documents and financial arrangements necessary to transfer ownership.

For a financed purchase, the buyer typically signs mortgage documents and other required paperwork.

The seller signs the documents necessary to convey the property and complete the transaction.

The closing attorney coordinates the transaction, including the required funds, title documents, and applicable recording procedures.

Once the closing has been completed and the transaction is authorized for disbursement, the parties can proceed according to the agreed possession terms.

Buyers should not assume that possession or keys are available before the conditions specified in the contract have been satisfied.

17. What Can Delay a Georgia Real Estate Closing?

Even well-organized transactions can encounter unexpected delays.

Common causes include:

• Outstanding lender conditions
• Appraisal concerns
• Title defects
• Insurance problems
• Unresolved repair negotiations
• Condominium project approval issues
• Missing documents or signatures
• Delayed closing funds
• Problems involving the buyer's or seller's performance

A closing date should not be treated as automatically extended whenever a problem occurs.

Some Georgia contracts include specific extension rights under defined circumstances. Other extensions may require a written agreement between the parties.

When a delay becomes likely, the real estate agents, lender, and closing attorney should coordinate promptly to identify the available options.

18. Typical Contract-to-Closing Timeline

The exact schedule depends on the purchase agreement, financing, property type, and transaction circumstances.

The following is an illustrative timeline for a financed resale transaction, not a set of mandatory Georgia deadlines.

Cash purchases may have fewer financing-related steps. New construction and certain other transactions may involve different procedures or substantially longer timelines.

Frequently Asked Questions About Contract to Closing in Georgia

How long does it take to close on a house in Georgia?

The timeline is negotiated in the purchase agreement. Many financed resale transactions are scheduled for approximately 30 to 45 days, but shorter and longer periods are possible.

What is the Binding Agreement Date?

In commonly used Georgia Association of REALTORS® contracts, the Binding Agreement Date identifies when the required written acceptance has been communicated and is used to calculate certain contractual deadlines.

Is there an automatic due diligence period in Georgia?

No. Buyers should not assume they have a universal inspection or cancellation period. Due diligence rights and deadlines depend on the agreement and applicable law.

Can a buyer back out after going under contract?

A buyer may have contractual termination rights, but those rights depend on the agreement, applicable contingencies, and required notice procedures. Terminating without a valid contractual basis can have financial or legal consequences.

Does the seller have to make inspection repairs?

Not automatically. Repair obligations depend on the contract and any negotiated amendments.

What happens if the appraisal comes in low?

The parties may consider renegotiation, additional buyer funds, or other options, depending on financing requirements and the applicable contractual provisions.

Who handles the closing in Georgia?

Georgia real estate closings are conducted by attorneys. The closing attorney handles the legal closing process and coordinates the transfer of ownership and funds.

When does the buyer receive the keys?

Key delivery and possession depend on the purchase agreement and completion of the closing. Some transactions include negotiated post-closing occupancy arrangements.

Can the closing date be extended?

Yes, when the parties agree or when a specific contractual extension right applies. Extensions should be handled according to the purchase agreement.

Final Thoughts: From Under Contract to Closing

The period between contract and closing is one of the most important parts of a Georgia real estate transaction.

Inspections, due diligence, financing, appraisals, title work, and final preparations all play a role in moving a property from an accepted offer to a completed sale.

For buyers, the priority is understanding the property's condition, satisfying financing requirements, and meeting contractual deadlines.

For sellers, the focus is fulfilling agreed obligations, preparing the property for transfer, and coordinating the documents necessary for closing.

A successful closing requires communication, careful attention to deadlines, and coordination between the buyer, seller, real estate agents, lender, and closing attorney.

At The Agency Atlanta – Intown Office, we help buyers and sellers navigate real estate transactions throughout Midtown, Buckhead, Brookhaven, Virginia-Highland, and surrounding Atlanta neighborhoods.

Whether you're purchasing your first home, selling a luxury condominium, or relocating to Atlanta, our team can help you understand the transaction process and prepare for each stage.

Buying or selling a home in Atlanta? Connect with The Agency Atlanta – Intown Office for personalized real estate guidance.

This article provides general educational information and is not legal, lending, or tax advice. Contractual rights, deadlines, financing requirements, and closing procedures depend on the specific agreement and circumstances. Consult your real estate agent, lender, or qualified Georgia attorney about your transaction.