In one sentence
The distinction between closings where funds disburse at signing (wet) and where funds wait for post-signing conditions like recording (dry).
The longer version
In a wet closing, funds move at the closing table; in a dry closing, signing happens but disbursement waits for conditions such as confirmed recording. State law and lender practice determine which applies.
The distinction affects timing and escrow mechanics, and the closing instructions specify exactly which conditions gate disbursement.
Common questions
- What is a wet closing?
- A closing where funds are disbursed at or immediately after signing, once documents are executed.
- What is a dry closing?
- A closing where documents are signed but funds are disbursed later, once post-signing conditions such as reviews or recordings are satisfied.
- Why would a lender choose a dry closing?
- To complete final reviews or confirm conditions after signing but before releasing funds, which some states and deal types allow.
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