Which component of a property sale does "balance due on completion" refer to?

The term "balance due on completion" specifically refers to the final remaining sum owed by the buyer at the closing of the property sale. This amount is typically calculated by taking the total purchase price of the property and subtracting any amounts previously paid, such as the initial earnest money deposit.

This balance is crucial as it represents the last step in the financial transaction of buying a property, ensuring that the seller receives the full payment agreed upon for the sale. In a standard real estate transaction, this amount would be paid on the day of completion when the ownership of the property is transferred to the buyer.

Understanding this concept is vital for buyers and realtors alike, as it outlines the financial obligations that need to be settled to complete the purchase, ensuring a smooth transfer of ownership.