Legal Definitions - settlement date

The settlement date refers to the specific day on which an agreement or transaction is officially finalized and all outstanding obligations between the parties are completed. On this date, any agreed-upon payments are typically made, assets are transferred, and all conditions of the agreement have been met, bringing the transaction or dispute to a definitive close.

• Example 1: Real Estate Purchase

  Imagine a family purchasing a new home. They have signed a purchase agreement, secured a mortgage, and completed inspections. The settlement date is the day they go to the closing office, sign all the final legal documents, the bank releases the loan funds to the seller, and the deed to the property is officially transferred into the family's name. This date signifies the official completion of the property sale, where all financial and legal transfers occur.

• Example 2: Legal Dispute Resolution

  Consider a situation where two businesses have been involved in a lawsuit over a contract dispute. After months of negotiations, they reach an out-of-court agreement. The settlement date is the day when the defendant company makes the agreed-upon payment to the plaintiff company, and both parties sign documents formally releasing each other from further claims, leading to the dismissal of the lawsuit. This date marks the final resolution of the legal dispute, with all terms of the settlement agreement being executed.