Real Estate Fable: Possession at Funding

One, hot (yet cloudy) Oklahoma afternoon at approximately 12:00 pm, a closing was taking place between Seller Mr. Fox and Buyer Mr. Bear.

Getting under contract was somewhat intense, Seller Mr. Fox tugging on the purchase price one way and Buyer Mr. Bear pulling the other.  They made it through the inspections and repair phase without showing their claws AND everyone seemed to whistle while they worked through the remaining phases of the transaction.

Now, back to that Friday afternoon at the closing table.

Seller Mr. Fox and Buyer Mr. Bear signed the paperwork in their separate rooms.  It all came down to waiting for funding.  Thirty minutes rolled by, then an hour, at which time the Closer walked into Seller Mr. Fox's room and said, "We are still waiting on funding but Buyer Mr. Bear and his agent would like to know if they can have the keys so they can start moving before the rain comes in."

The whistling seemed to stopped instantaneously.  Seller Mr. Fox looked to his agent for a response.  Luckily, for Seller Mr. Fox, his agent had prepared for this exact situation.  During the offer stage, the Seller's agent insisted on including the phrase "Possession at Funding" instead of "Possession at Closing."  As soon as the agent reminded the Closer of that detail, you could see a sign of relief on the Closer's face.

When the information was relayed to Buyer Mr. Bear, although disappointed, he expressed understanding.  The contract had given guidance to the situation and therefore offered stability as the parties continued to wait.

Just before 5:00 p.m., funding did come through.  Buyer Mr. Bear left with keys in hand and Seller Mr. Fox left with his proceeds from the sale.

 

This tale could have ended with attempts to negotiate at closing, high emotions, and overall uncertainty had the phrase "Possession at Funding" been excluded from the contract.

 

Buy and Sell with Confidence

Alesha A. Wilson, M.Ed., MRP
Broker Associate w/ 525 Realty Group
525 North Jackson
Edmond, OK 73034
(405)285-7000 (office)    (405)837-6511 (cell)
alesha@buyandselloklahoma.com
                         www.buyandselloklahoma.com