When must the deposit and disbursements reflect a zero balance in a real estate transaction?

In a real estate transaction, the accounting for deposits and disbursements must reflect a zero balance at the closing of the transaction. This is critical because it ensures that all funds related to the transaction have been properly accounted for and that there are no outstanding balances or discrepancies. At closing, all parties involved should have a clear understanding that all financial aspects of the transaction have been settled, and any remaining funds or deposits have been appropriately handled.

A zero balance at closing confirms that all debts related to the transaction have been paid, commissions have been disbursed, and any escrow funds have been properly allocated. This process prevents future disputes and ensures that all financial obligations have been met before the transfer of property ownership takes place. Establishing this zero balance reinforces the integrity of the transaction and provides assurance to all parties involved that the deal is finalized.