Home Buying FAQs: What Are Closing Date and Possession Date? by Jennifer Prestwich – REALTOR®

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

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