A REALISTIC VIEW OF THE CLOSING
I always tell my first-time homebuyers the same advice; never make plans to move in to your new home right after closing. While there is a general expectation to receive keys to your home on the day of closing, there are numerous known delays which can create stress if you find yourself in a rush to the house after closing.
As a general rule, the seller, or whichever party is holding the keys to the home, will provide the keys to the buyer once the deed to the property has been recorded in the register of deeds of the county where the home is located. This act of recording places title to the property in the name of the buyer and the keys can then be released to the new owner.
As an exception to the general rule, a seller may allow a buyer to have the keys to the home prior to the deed to the property being recorded, saving the buyer a good amount of time in waiting on keys. Many sellers will require, however, that certain criteria are met before releasing the keys prior to recording. Common requirements are (a) that the proceeds for the purchase be paid in full and held by the closing attorney, and (b) that all funding requirements for a lender, if a lender is financing the transaction, be fulfilled. And, of course, these are the same requirements that need to be in place in order to record the deed. This exception to the general rule simply takes out the delay for the buyer to wait on the documents to be uploaded, for the title search on the property to be updated and verified to be clear, and for the recording to occur.
We find that the delays in closing are usually related to the above-mentioned common requirements. We either do not have sufficient funds to record or the funding requirements of the lender, if any, are not fulfilled. This can be caused by numerous factors and are generally solved by the passage of time.
So, if you are planning to close on your first home, please be aware of the delays and make sure you buffer enough time for the movers, the internet people, guests, and others on the day of your closing. If you are planning to purchase a new home, we at Black, Slaughter & Black would be glad to help you navigate your closing and assist you in planning your closing day.