The Final Steps in buying a home are called the Closing Date and Possession Date.

One of the most common questions that home buyers have is the question of when the property actually becomes theirs.  In the state of Colorado, transfer of deed happens at the Closing.  What that means is that when the home sellers and home buyers go to the Closing of the property, the home transfers from the seller to the buyer right then and there.  If the Possession Date and the Closing Date are the same, keys are handed over to the buyer, and the buyer can go home to their new house straight from closing.  If the buyer and seller have agreed that the buyer will take Possession at Closing, then the seller will have already moved everything out and the house will be ready for move in.

The sellers may be in a situation where they would like to spend the next few days after closing moving out.  In this case, the "Possession Date" on the contract will be different from the Closing Date.  The buyers and sellers are agreeing that the sellers will be taking a few days to move out after the Closing, and there will be a Possession Date and a Possession Time - basically a deadline for the sellers to vacate.

All of this is agreed upon in the Contract to Buy and Sell, in the Dates and Deadlines Table:

 

 

 

What if the sellers still haven't left once the Possession Date and Time have expired?  You will notice that the Dates and Deadlines table has a paragraph number next to the terms.  In Paragraph 17 of the Contract, your Realtor will help you fill in an actual "fine" amount that you can charge if they don't vacate.

 

 

You will notice above that there is a box for Leases or tenancies.  If the property being purchased has been used as a rental property, this spells out the expectations for moving the current renter out.  But, just below that box it is spelled out in detail what the remedy will be if the seller does not vacate on time.  There is a blank box where you and your Realtor will put the amount that would be charged.  You will want to take into account what it might cost to stay in a hotel, store your furniture and household items, and have meals.  Usually, I recommend putting $500 per day.

Questions about Home Buying or Selling?   Call me today! 720-341-5253

Jennifer Prestwich, REALTOR®

Your Castle Real Estate

 
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16 Comments on Home Buying FAQs: What Are Closing Date and Possession Date?

JUN
04
839,780 Points 69 Featured Posts Outside Blog Called Shot Master

Its an important moment for everyone involved as all receive their rewards for their efforts...May there be many such moments
6:21am • #1
299,551 Points 48 Featured Posts Outside Blog Called Shot Master

Thank you, Rickie- you too!
6:23am • #2
653,443 Points 9 Featured Posts Outside Blog Called Shot Master

Had a rough closing last week because the seller signed on a date and the renters could not get out... we figured it out after a lot of stress.
6:47am • #3
300,008 Points 7 Featured Posts Outside Blog Attended Rain Camp

At $500 per day, you kind of hope they are a little bit late.... lol. That amount does gove proper incentive to the seller, though.
8:03am • #4
152,633 Points

Luckily, around here, close and posession take place on the same day.

Good post, thanks for sharing it.
8:42am • #5
7 Featured Posts Outside Blog

You'd be amazed how many home buyers do not have a clue about the above when they come in for a loan. Most assume they get the home the day of closing. And then there are those who are never told it is negotiable.  Good post.
10:26am • #6
153,201 Points Outside Blog

In the state of Arizona the closing date is the date in which the deed is recorded at the county office.  A few days before closing the buyers and sellers go into the title company to sign all the documents so the closing can take place on the date determined on the purchase contract and the buyers loan can be funded in time.  This causes a great amount of confusion for our out-of-state buyers who are used to getting the keys to their new house when signing the papers.  In Arizona they get the keys when the deed is recorded.  This happens 1 - 3 days later.
10:40am • #7
981,936 Points 114 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Closing, possession and signing dates are constantly getting confused.  Explaining it when writing up the offer helps. Good topic Jennifer.
1:21pm • #8
504,847 Points 26 Featured Posts Outside Blog Called Shot Master

Jennifer, this is a great topic to write about. Keeping the closing date, the occupancy and possession straight can be a little tricky.
6:11pm • #9
878,442 Points 48 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

I would say that more than 95% of my closings allow the buyer to take possession on the funding date which is normally the same day as closing or by the following morning. Once in a blue moon do we have a lease back to the seller and a different possession date.
7:41pm • #10
762,151 Points 106 Featured Posts Outside Blog Called Shot Master

We take this information for granted. We forget that buyers and sellers may not know the difference. I had a seller just ask me today if the final walk-through had been done yet? She is 3 weeks from closing. I explained it would be done the day of closing. She wanted to know why so late. I know I covered this with her before, they just forget.
8:08pm • #11
462,762 Points 2 Featured Posts Outside Blog

These dates have to be clearly defined on the Purchase Agreement, It's our responsibility to make sure it's done correctly.
8:14pm • #12
JUN
05
1,054,171 Points 286 Featured Posts Outside Blog Called Shot Master

Jennifer, That possession date can be one of the stickiest terms of the contract.  Most of our sellers can provide the keys at closing, but sometimes they'd like 2-3 days to move out because of the risk of closing NOT happening on time and all their stuff is out.
3:02am • #13
292,425 Points 20 Featured Posts Outside Blog Called Shot Master

Jennifer,

Excellent explanation of a common question and what can become a sticky wicket, especially if the seller is having financial hardships.  Dealing with a reliable lender who funds on time can minimize the problem.  Reserving the right for the seller to rent-back at buyer's new PITI + HOA dues also can help.
9:53am • #14
299,551 Points 48 Featured Posts Outside Blog Called Shot Master

Chuck- Ouch!  It is always rough when there are renters in place.  They need to be considered in the equation too!  Glad you got it figured out.

Sandy- That's the idea... :)   I have seen sellers use their former home as "storage" for several days while the buyer is trying to move in.

Anthony- it's the same here - usually.  Occasionally, the sellers want a couple of days to move out after they are sure the sale will close.

D A - I always try to inform my buyers (and sellers) that anywhere there is a blank on the contract, it is negotiable.

Barb- That does make it a little easier, though.  At least then the sellers can pack up and move out knowing their sale has closed!

Carla- Thanks!  I have seen more and more occupied homes being sold lately, and the sellers want a few days to move out after signing.

Eric- it is important to know when they are the same date or not.

Jonie- I have not had a lease back to the seller before, but I have had a seller lease to the buyer prior to closing.

Tammie- We deal with these terms every day and it is easy to forget that our clients don't!  

 

 
4:34pm • #15
299,551 Points 48 Featured Posts Outside Blog Called Shot Master

Robert- That's what we are here for!

Bliz- I'm seeing this more nowadays.  It's always good to know what your options are when packing up your whole house!

Lloyd- A good lender is worth more than gold.  I have seen delays because of lenders before... no one is happy when that happens.
4:50pm • #16

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