When Does the Buyer Get the Keys?
After a home sale is recorded with the county and the escrow is closed, the buyer always asks, “When do I get the keys?”
The change of possession of the property can be contentious, which is why it is crucial to deal with the issue at the beginning of the process, during the initial negotiation.
There are a few options for buyer and seller, depending on the needs of both:
Immediate Possession: In this case, the seller would already be moved out of the property and buyer could take possession on the day of closing.
This is common in vacant properties or if the homeowner decided to move out before the sale closed.
Close of Escrow Plus …: If the seller lives in the home, they often will not move out until they are sure the home sale is going to close. In Southern California, it’s common for the buyer to allow the seller three days to move, after the sale has closed, though the number of days can change if both parties agree.
This can also apply if the seller is buying a replacement home and needs to close their sale before they can close their purchase. There can be a gap of a few days between the two transactions.
Seller Rent-Back: In some circumstances, the buyer may agree to lease the property back to the seller after the sale closes. Some sellers need a couple weeks before they can move, while others may need months. The buyer and seller agree in advance on the rent amount, usually calculated per day.
In these cases, rental agreements are required to ensure the new owner has the right to evict their “tenant” if they don’t live up to the terms of the contract.
Early Occupancy: Some sellers will agree to allow the buyer to move in before the sale closes. This is a very risky option for the seller, especially if the home sale doesn’t not close.
Rental agreements are required, with special terms to deal with the worst-case scenario.
We do not recommend any homeowner allow this.
Tenant in Possession: If the property is occupied by a tenant, the buyer may agree to take the home subject to the tenant remaining, long-term or short-term. This is common with investor buyers, or if the actual tenant is buying the home from their landlord.
It is especially risky for owner-occupant buyers who may be forced to evict tenants who don’t vacate as agreed.
Thinking about buying or selling a home? Want to discuss today’s best strategies? Call us today at 951-778-9700 or use the form below to request a 10-minute consultation.
Illustration courtesy of smarnad | freedigitalphotos.net
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Buyer Takes Possession After Home Sale Closes | Renting Back a Home | Buying a Home | Moving Out After Home Sale | Brian Bean and Tim Hardin Dream Big