The time is finally here. You’ve completed your negotiations and you’re ready to go to the closing table. So as a buyer, you must be thinking – when do you get the keys? The answer is not always the same and it depends on what is stated in your real estate sales contract.
Most commonly the closing and possession date will be the same date. At your closing appointment, you will sign your closing documents and present your final funds. These funds will be deposited in escrow with the title company. The sellers will receive their proceeds. Our local sales contract defaults to a 5 pm possession date. But there is a choice to change the date or time. Most buyers take possession at “funding”. This means possession for the buyer occurs when the seller receives their funding from the bank as an electronic wire or a check. Depending on the lending institution, the funding can take a few hours to process. For example, if all closing documents are signed later in the business day, the funding may not occur until the next day. If my buyer elects to take possession at funding, I encourage them to sign their closing documents in the morning. This presents a greater likelihood that they’ll receive the keys to their new home before the close of business.
However, in our seller’s market, it’s common to see delayed possession after the closing date, which favors the seller. A seller may need this delayed possession because they still completing a new home, or they are remodeling. It’s important to note that if the sale is financed, the buyer must take possession no more than 60 days after their closing. We refer to this as a “rent back” or “lease back” when the seller rents the property back to the seller for a specific period after closing. In this scenario, renters’ insurance and utilities needs to be negotiated.
Liability coverage is important during the duration of the time that you own the property. When the property changes ownership, the new owner should obtain homeowners’ insurance (a requirement with financing). Sellers should continue to keep homeowners’ coverage until the closing date. Additionally, utilities should be transferred into new owner’s name on the date of closing. This ensures that the property is covered if there is a fire or loss on the property and that there will not be a blip in service. Weekends and holidays could be involved.
A final detail when sellers and buyers’ requirements have been satisfied, how do you get the actual key? Typically, the realtor should hand them to you with a closing gift.
Johnson County market update
This week in Johnson County there were 1038 active listings and 1546 listings went under contract (Source: Heartland MLS, May 25, 2023).
About Maggie
Maggie is a ReeceNichols real estate agent and a third-generation realtor. It’s her passion to provide a professional and positive buying and selling experience to her clients. Maggie has been featured in Realtor.com, Apartment Therapy and in other publications. https://maggief.reecenichols.com/
Follow her on Instagram and Facebook for updates on the local market.
