Transfer Possession - Don't Fumble Now

Possession Timeline
If the home is vacant, the possession timeline is very simple. Possession is given to the buyer as soon as the deed is recorded. This is generally one business day after the seller and buyer sign all the closing documents at the title company.

If the seller occupies the home, this needs to be negotiated as part of the offer that the seller accepts. Normally the seller doesn’t want or cannot move prior to the recording of the deed because the seller doesn’t have the proceeds from the sale until the finds are released by the lender and the deed records. Some things may need to be negotiated such as whether or not the seller has free use of the property for that time or if the seller has to pay for possession after closing. If so, the costs are usually credited to the buyer in the closing documents rather than having the seller write a check directly to the buyer.

If there is a tenant in the property, that should also be addressed in the sale agreement. Is the seller responsible for having the tenant move prior to the closing in which case the escrow period must be at least 30 days long. If the buyer accepts the tenant, they will thereby be accepting the current contract that exists with that tenant.

Utilities
The Seller and Buyer should both communicate with the appropriate utility companies just prior to closing to arrange for transfer of responsibility between the owners. Click Here for access to a list of many local utility companies and the contact in formation needed.