Possession is Determined by the Sales Agreement

By
Real Estate Agent with Front Gate Real Estate Broker 11085
https://activerain.com/droplet/52pW

The real estate contract usually has a clause that dictates when closing and possession takes place. My understanding of what is "typical" varies in different parts of the country.

 

This is evident when someone expects to automatically receive a certain number of days to vacate after closing. Some sellers exclaim they had 30 days to move in certain parts of the country and that was routine. Others mused they were previously allowed three days after closing to move.

 

Unless it is spelled out in your sales agreement, possession transfers with closing. Our Mississippi contract gives two options:

 

1) Possession shall be delivered to Buyers at closing and full funding;

2) By separate Possession Addendum attached and made a part of this contract.

 

Last night I dreamed I was helping a client move out of their home. In this dream, the closing was Cardboard boxesscheduled for mid-afternoon but the home was still full of boxes and furniture. As quickly as we moved items out, other items appeared in their place. Confused, I surveyed the items and realized what was happening... The BUYER was moving in at the same time the SELLER was trying to move out!

 

Imagine my relief when I realized this was ONLY a dream (and not a huge misunderstanding)!

 

The moral of the story? Be sure the terms are spelled out in writing so there are no surprises!

 

Image courtesy of yodiyim at FreeDigitalPhotos.net 

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Ambassador
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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Closing and possession are separate entries in out contracts but beyond legal, courtesy really helps.

Mar 16, 2017 04:01 PM #1
Rainmaker
2,456,037
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

I once had a closing where the seller didn't seem to be motivated to move out once we had closed.  This was even though posession stated, "Upon recording."  My buyer, an electrician, simply went over and, shut off the power main, and went about the business of switching out the electrical panel.  He didn't finish the job until the seller's were completely out.  It took about 16 hours.  It was the dead of winter, and temps were cold.

Mar 16, 2017 04:38 PM #2
Ambassador
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Anna Banana Kruchten CRB, CRS 602-380-4886
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana!

Pat now that is a nitemare dream for realtors!!!  Here in AZ possession is upon recording at the county and we make that very clear to all buyers.

Mar 16, 2017 06:18 PM #3
Rainmaker
572,839
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

Joe Pryor - Certainly closing and possession are two different things but must be addressed up front in writing.

Myrl Jeffcoat - I LOVE how your buyer handled things! I had a seller who wasn't completely moved out at signing. It was a tense few hours and I know the buyer wasn't happy.

 

Mar 17, 2017 07:04 PM #4
Rainmaker
572,839
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

Anna Banana Kruchten - How long does it take for recording at the county to take place? Same day as closing or longer?

Mar 17, 2017 07:06 PM #5
Rainmaker
1,214,159
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Whatever the "norm" or typical ways of a specific area, Pat Starnes ... I'd think that would have to be reflected in the Contract, because as you state ... THAT is binding.  And what the parties involved should expect and respect ...

Gene 

Mar 18, 2017 01:12 PM #6
Rainmaker
572,839
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi - I certainly agree. Possession of the property and timing the move is critical to a successful transaction, and this expectation has to be addressed. Thanks for stopping by.

Mar 19, 2017 04:58 AM #7
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Rainmaker
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Pat Starnes-Front Gate Realty

601-991-2900 Office; 601-278-4513 Cell
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