Many buyers wonder when they actually can move into their new home.
They wonder when possession actually takes place. Most buyers take
possession of their home the day of closing. The keys and other security
devices are handed from the seller to the buyer at the closing and the house
has officially changed ownership. In some areas the seller retains possession
at no cost for three to five days after closing, but the customary day of
possession is the day of closing. You do not need to wait to move in until
you receive the deed, which will usually be mailed to you from the recorder’s
office after it has been properly placed in the public records.
Sometimes possession is given to the buyer before the closing and other
times the seller may need to stay on in the property after closing, and
possession is given at a later date. Sometimes the day which is set for the
closing and the day the buyer is scheduled to take possession is used as a
negotiating tool. The buyer may allow the seller to stay on after the close
of escrow, for example, in exchange for some reduction in the purchase
price. Or, if the buyer needs to move in before closing, the seller will
often let him take possession early. The seller may prepare an occupancy
agreement, which is a form of a lease for the property. This lease agreement
would cover the time which the buyer intends to occupy the property prior to
the closing date. This type of lease is normally on a week-to-week basis and
many real estate associations publish a specialized lease form which is
intended for use an addendum to your purchase agreement. Sometimes the buyer
may request that he be permitted to store items on the property prior to
closing, or have access to the property prior to closing, but most lawyers
advise against this practice.
Sometimes it does occur that the seller must stay on in the property
after the close of escrow. His new house may not have closed escrow, or he
may need additional time to move out. These arrangements should be made
between the buyer and seller prior to close of escrow and the instructions
given to the escrow agent. You may want your lawyer to review any lease
addendum agreements, to be sure that you cannot be held responsible for
possible liabilities or damages which may occur.
More Title & Escrow Articles:
Ending A Co-Ownership With A Quitclaim Deed
Exceptions To Coverage In Your Title Insurance Policy
Escrow Impound Accounts: Do You Have a Choice?
Published: August 20, 1999
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