Related topics
All of the papers have been signed and all of the funds distributed. But the transaction isn't quite over yet. You might be ready to shout, "I'm a homeowner!" from the rooftops, but that's not how the world finds out that you now own a home.
To make everything official, your closing agent or attorney must record the deed in your local property records office. In some areas, the closing agent can record the deed electronically, which takes just a few minutes. In other areas, someone - the closing agent, an assistant, or a courier - goes to the records office to record the deed. Especially in the case of an in-person recording, it may take a day or so to file the paperwork. Once your local government has the new deed on record, you're done. The home is yours. Now you can shout from the rooftops.
You'll receive the deed and your title insurance policy several weeks after the closing. Be sure to put them in the same safe place you keep the other documents related to the purchase of your home.
Even though the home is yours, depending on where you live, you may not be able to move in right away. Your purchase agreement probably has a clause in it defining when you can take possession. In most cases, that's immediately after the closing - the seller drops the keys in your hand, and you can start moving in.
But in some states, you may not be able to take possession right away. Massachusetts, for example, makes buyers wait until the deed has been recorded before taking possession - which may happen anywhere from an hour to a full day after the closing. New York sellers have a legal right to stay in their just-sold home for up to a week if they deposit funds in escrow to guarantee that they'll move out within that time. Make sure you know the law and how it affects your move-in date.
And you may have made special arrangements to let the seller stay in the home a little longer if, for example, he closes on his new house after you buy yours. In a situation like that, you and the seller work out the details ahead of time - how long the seller may stay and how much rent the seller pays you (make sure you get the details in writing).
Your new homeowners liability policy protects you if the seller injures herself while living in your newly purchased home.
When you can take possession may also be affected by the kind of market you buy in:
- In a buyer's market, buyers typically insist on immediate possession. Sellers who can't provide a move-in-ready home at the closing may find it harder to sell their home.
- In a seller's market, the roles are reversed. Buyers are more likely to agree to a seller's demand to stay in the home for a period of time after the closing. In a situation where multiple buyers compete for the same house, buyers might sweeten the deal by allowing the seller to remain in the home at a very low rent (or even rent-free) for a week or more after the closing.
- In a neutral market, possession usually happens immediately or soon after closing.
Whenever you take possession, make sure that your purchase agreement states - in clear, black-and-white terms - when the seller will vacate the house. This doesn't have to be tied to a certain date. In fact, the best phrasing is something like "on closing" or "two days after closing." This gives both parties flexibility if the closing date changes.
Taking possession means that you finally get the keys to your new home. And don't forget items like remote garage door openers and owner's manuals and warranties for appliances, the furnace, and the central air conditioner. It's all yours now.
You did a lot of work and waited a long time to get those keys. But change the locks as soon as possible. This doesn't mean you don't trust the seller (although you might not). It's just common sense. You never know who might have a spare key that the seller didn't collect.
