When should the buyer pay the purchase price?https://jhwbizlaw.com/wp-content/themes/movedo/images/empty/thumbnail.jpg150150Jiang Hong Wilkin Business LawJiang Hong Wilkin Business Law//jhwbizlaw.com/wp-content/uploads/2020/07/jhw-logo.png
Transaction Closing is the completion of a transaction. Closing is like a purchase where goods are delivered against payment. Goods in this case means legal documents. All the transaction documents should be signed, and proof of satisfaction of conditions, share certificates, company records, keys, etc. should be received, and then the buyer makes the payment to the seller. The transaction is completed once the payment is made. Payment is the last step of a transaction.
Some Chinese investors did not inform lawyers and made payment to the seller before closing. That is to say, they made payment to the seller before receiving any goods. If the seller refused to provide any legal documents, it will be very difficult for the investors to claim remedy.
The investors should keep communicating with lawyers during the transaction and follow lawyers’ instructions. If payment needs to be made in advance, it should be made to the seller’s lawyer’s trust account. The seller’s lawyer will then transfer the payment to the seller after the lawyers have received the “goods”.