When Do You Get the Keys?
Finally, the day you have
been waiting for is here. Closing. This is the day you become a homeowner.
You’ll walk away with the keys to your new home. Or, will you?
It comes as a surprise to
many buyers that the day they pay their money and sign the papers may not be
the day they get the keys. Often that won’t come until a day or more AFTER
closing. The reason is usually a contract provision known as Possession.
Although Possession usually
occurs the same day as Closing the contract could provide for the seller to
have a day or two to move out. More typically, Possession is conditioned upon
Funding – when the escrow agent disburses the transaction monies.
In most cases the buyer’s
mortgage company is to blame for delays in Funding. They often require
review of the signed documents prior to authorizing disbursal of the funds.
Or, they may not even wire the funds to the escrow agent until after closing.
So, it pays to understand the
terms of your contract and the policies of your mortgage lender when planning
that first visit to the new home.
First Published 3/18/01
