Closing On Your Home, What Can Happen

Once you've gone to contract you more than likely sighed a breathe of relief that it was yours no other buyer could swoop in and take your dream home ! The next big step was obtaining your mortgage commitment and typically your given 30-45 days to do your part but what are the current homeowners doing during this time ? How long can it actually take to actually get they keys to your new home !

Normally the listing agent will begin working on finding there new home whether it be a rental or a purchase of their own.  This is where and why your on or about closing date will come into play. There are a few reasons that this becomes important. 

1. As a buyer having nothing to sell is an added bonus for a seller because not only will your purchase depend on your sale, but it also means their may be some flexability as closing date.

2. If the sellers plan on a purchase you may want to be prepared that your closing may be towards the later end of your on or about date because the closings of both will likely need to be done close to coinciding with each other, and their buy process will begin after yours is nearing the 30 day mark.

What happens if your nearing your on or about it closing date but you can't close ? 

1. If your getting close to the date and are unable to close because of issues obtaining your mortgage commitment, your attorney can ask the sellers attorney for an addition typically they will be granted if you have not exceeded 45 days.

2. If you have obtained your commitment but it's simply a matter of timing in getting out of your rental than most times this would have been taken into consideration. If there's a specific date you have to stay until telling your buyers agent is very important because we like the on or about date to be realistic.  

It's important to keep in mind that your on or about date allows not only you 30 days from the date for the home to close.  So if your on or about date is May 1st both parties buyer or seller will not be considered in default of the contract until 30 days after May 1st.  What happens if the seller needs to stay a bit longer ?

1. Most closings you obtain "vacant possession", meaning receive keys the same day as closing but there are rare occasions that you may not.  In this case you'll want your attorney to hold a fair amount in escrow for any unforeseen issues from the time of closing until you take possession.  You will still do your final walk thru the day of closing to make sure that their are no large issues with the home. Normally the agents will be present for both walk-thru appointments.  

2. If they are going past the 30 day flexability the attorneys will sometimes request the sellers paying you "rent" for the time they plan on staying for.  The reason this only occurs after the 30 days is because within 30 days it is not a breach of contract. 

Although ideally everyone wants to close as soon as possible and exchange keys the same day, it is not always possible there are sometimes unforeseen circumstances for either party.  Open communication will always help along this process beginning with an on or about date based on your needs, and for the sellers informing your agent and perhaps a bit of house hunting prior to going to contract !