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sandeep00

Keys handover after closing

Sandeep00
12 years ago

Hi Friends....After months of turmoil, we are finally heading towards a closing in 2 weeks time. The seller is saying that they will handover the keys a couple of days after closing once the funding and all is done. My realtor said that it is a normal practice. Do you guys think it is okay? Should i look for any specific clause to be covered in case there is any damage to the house in those 2 days? Appreciate your responses.

Comments (58)

  • LuAnn_in_PA
    12 years ago

    We always got the keys at closing and moved in that night. Walk-through of the empty house was always the morning of the closing.
    Things sure differ!

  • redcurls
    12 years ago

    I don't know if this is relevant, but I found it interesting that in Florida you cannot close when a hurricane is even in the FORECAST. We were scheduled to close, but could not do so until what ended up being a tropical storm passed. It was about 3 days. This was about 5 years ago, but it is probably the same now.

  • nancylouise5me
    12 years ago

    Never heard of not getting the keys to a home one has just purchased at closing time. That has how it has been in all our closings. As posted above, the walk through of the empty house was the morning before the closing and then at closing we received the keys. I don't think I would like having to wait to take ownership of a house that I just gave the seller money for. NancyLouise

  • c9pilot
    12 years ago

    In Florida you CAN close if there is a hurricane in the forecast.
    But, you might not be able to get insurance if there is a named storm in a "box" (defined by the insurance company - but generally in the vicinity of the forecast cone) and if your new home is in that box. And your lender won't close unless you have homeowners and flood insurance. So it's normal to have a clause in the contract for closing delays due to named storms.
    You'd be able to close in the panhandle if a storm was forecast to go up the Atlantic coast, and vice-versa (depending on your insurance company of course)

    All my closings around the country (as a military relocation), we walked-through in the morning and got the keys at the afternoon closing. Funds were transferred on that same day.
    There was a post a few months ago from someone wondering why their financial information was going to the title company before closing and someone explained all this, how they start the process of wiring funds (etc) a few days before so that it all completes on the day of closing.

  • brickeyee
    12 years ago

    "how they start the process of wiring funds (etc) a few days before so that it all completes on the day of closing. "

    You may never have hit one of the 'dry closing' states.

    It is very different than wet closing states.

  • brickeyee
    12 years ago

    Here is a matrix showing the wet/dry status of states nad some refs to state law and procedures.

    I have not checked the table, so verify anything before relying on it.

    Here is a link that might be useful: Wet/Dry closing matrix

  • berniek
    12 years ago

    Here is another view adding to the confusion about closings.

    Here is a link that might be useful: When is a Sale Deemed

  • brickeyee
    12 years ago

    From the link

    "Though the buyer's loan has been approved, the wire from buyer's lender doesn't arrive on Wednesday..."

    This is why wet closings with collected funds and hard time limits on delivery of the collected funds from the closing company are a good idea.

  • Sandeep00
    Original Author
    12 years ago

    This transaction is happening in Texas...if that helps

  • guvnah
    12 years ago

    I'm in Texas & in 6 real estate purchases (both residential & commercial) I've always gotten the keys @ closing. I think my funds were already at the title company & settled by signing day.

  • terezosa / terriks
    12 years ago

    I'll say it one last time

    Signing DOES NOT EQUAL closing

    Funding + transfer of deed EQUALS closing

  • SaltiDawg
    12 years ago

    terriks,

    You seem to equate saying something repeatedly makes it right.

    Closing is the process of signing paperwork and transferring monies at a given location.

    My wife hosts numerous closing companies at her place of business. They are not deed recording companies, they are closing company. Without exception, these companies believe they are hosting Closings in conference rooms my wife provides ... but what do these companies know? Oh wait, they are Closing Companies.

    In CA there really never is a Closing where people are in one room... the process is handled by a licensed and bonded Escrow agent who closes the process when all requirements of the escrow are satisfied.

  • terezosa / terriks
    12 years ago

    Closing is the process of signing paperwork and transferring monies at a given location.

    I agree with you. But in many states paperwork is signed but funds are transferred at a later date. Signing is one step of the process, transferring the money is the next step. Closing is not complete until the seller has been paid.

    The OP wrote: The seller is saying that they will handover the keys a couple of days after closing once the funding and all is done

    In other words when the closing process is complete, the seller will hand over keys, NOT when the OP signs their documents (because the process is not complete yet). I see no problem with that. Why would anyone hand over keys until they had received the proceeds of the sale?

  • SaltiDawg
    12 years ago

    "Why would anyone hand over keys until they had received the proceeds of the sale?"
    It is done that way in the vast majority of the USA - as many of have attested to - the reason it is safe is because "someone" has escrowed the monies as either cash, or Cashier checks, etc, etc, as allowed/required by the local jurisdiction and detailed in the links above.

    If you think that all of us that haved walked out of closing with the keys in our hands were simply fortunate to have found dumb sellers,, you'd again be mistaken. :-)

  • brickeyee
    12 years ago

    "the reason it is safe is because "someone" has escrowed the monies as either cash, or Cashier checks, etc, etc, as allowed/required by the local jurisdiction and detailed in the links above. "

    It may be done this way, but in many dry settlement states the money has NOT been "escrowed" since the bank may not have even funded the loan (that means provide the cash).

  • stolenidentity
    12 years ago

    There is no law that says one can't negotiate getting the keys no matter where/who/what or the humidity of the location. I would insist on it.

  • calliope
    12 years ago

    We have always been handed the keys at closing when we hand them the check, and signed the papers. The deed being registered depends on how industrious the attorney or agent is in getting it done. It is understood at time of purchase and negotiated if necessary when we may obtain keys and move in. If the selling party is still living in the house, they may state that you can occupy it X days after closing. You know and agree to it when you sign the contract. If you want them out at closing.......and they want you to buy it, believe me they are out of there and you got the keys. If you write a rubber check, I'm assuming you will face the consequences. That's how it's done in my state. It does differ. We handled it just like saltidawg.

  • brickeyee
    12 years ago

    "That's how it's done in my state. It does differ."

    Among Western states 'dry' closings are not uncommon.

    Nothing closes until the money changes hands.

    You may or may not own the land just because the deed is signed.
    In some places deeds are not valid till recorded at the court house, while in others the mere act of signing makes the deed valid. Recording only puts everyone on notice about who owns the land.

    Since folks on this board are from all 50 states (and an occasional Canadian or other non-US poster) there are numerous methods present.

  • terezosa / terriks
    12 years ago
  • marie_ndcal
    12 years ago

    I guess we were lucky in CA when we sold. After a very long time and 2 bad agents, sold the property (rural area) by a great realtor to a person who had been looking in the area for 6 months and had been told our house was under a sale pending (lying previous agent). She liked it immediatly, and accepted not only the house but half the furniture (we moved out of state), yard stuff, wood etc. I had hired a person to clean it after all the stuff was moved, but she came in and found out her DH and friends DH both were in the same law enforcement jobs, she had pets, and I had had pets, said don't worry about anything, I handed her the keys, left the utilites on for a week, so she could get others to help and everything went great. Got the check mailed to me. I feel like I was a very lucky person, and the area got a terrific new neighbor.

  • daveho
    12 years ago

    Texas is a wet closing state. You should get the keys at closing.

  • happyintexas
    12 years ago

    The way the title companies handle it in my part of Texas.... they oversee the signing of all paperwork first. When both sides have signed, they spend a couple of hours (or so) funding the loan with the mortgage company. As a listing agent, I'll hold on to the keys until funding, then meet the buyer's agent and buyers at the house to open it up for them. Generally the buyers get the keys the same day as closing.

    With a small amount of effort, funding can and should occur soon after closing (signing).

    To the original poster...if the sellers are staying in the house a couple of days after signing, ask for a lease back.

  • dreamgarden
    12 years ago

    When we closed on our house last year, the only folks in the room were our RE attorney and title agent. We signed the papers and paid with a certified check.

    We were told we could pick up the keys at the realty office. Drove by and got them, then went straight to the house. Woo hoo!

    Later on our attorney called us and said the sellers agent called and said we weren't supposed to go to the house until the check cleared. The sellers agent had told him he wasn't sure our bank certified check was 'good' and wanted us to wait a day or more for it to clear.

    I told him we already had the keys and been to the house. If the realtor wanted to verify that our check was good then they could call our bank. I said the house is ours now. Possession is nine-tenths of the law!

    If they had any other questions to go through him (our attorney). We were done talking to them.

    They had been a PIA from day one. Even the seller was PO'd with them. The only reason the deal went through was because we and the seller were reasonable with each other. The agency just complicated things.

  • brickeyee
    12 years ago

    "The sellers agent had told him he wasn't sure our bank certified check was 'good' and wanted us to wait a day or more for it to clear. "

    BS.

    Certified checks are guaranteed funds.

    A cashiers check from a bank is NOT a certified check, and is NOT considered collected funds.'

    When a check is certified it is embossed by the bank (it can be ANY check) and the funds transferred to the local fed clearing house to be held until the check is presented.

    There is no way to stop payment on a certified check, and the only way to retrieve the funds is to present the check (or post a bond).

  • clg7067
    12 years ago

    At every closing I've ever been to, the seller receives a check at the closing. Keys are passed.

  • brickeyee
    12 years ago

    "At every closing I've ever been to, the seller receives a check at the closing."

    Never been in a dry state then.

    And even some wet states allow money to follow the document signing party by a few days.

  • michaelis7
    8 years ago


    Yesterday, as a Texas home buyer, I signed docs furing closing with a recognized and reputable title company. Provided my down payment as a cashier check and was told, by the title company, that funding and keys would transfer that afternoon after the sellers close at 2pm.

    At 4pm, I get a call from my lender, who wants to verify my employment - verbally. My school district doesn't provide this service and this leaves me with verifying employment on-line through the district web-site and emailing letters of employment and assignment, new annual contract just recently released by the school district. This information was provided to the lender late in the evening.

    Now it's 11am the next day and I have heard nothing from anyone.

    Do I have a problem?

    I guess this confirms that titles only close after "the powers that are really in control" finally release their grip on the funds, deeds and the transaction. The law is on the side of the money handlers.

    No doubt, every home buyers experiences are different, yet, only the LAWS of that state and the enforcement thereof matters!

  • Suzi AKA DesertDance So CA Zone 9b
    8 years ago

    Sandeep00

    Just get rid of those keys and change the locks. You are the new owner. Make it your game. You have no idea who has the keys.

  • Linda Doherty
    8 years ago

    In texas, (and you can read the last page of the TREC contract about "Closing", )you get possession/keys after closing and funding. If buyer and seller close in the morning before 11 or so, it normally funds the same day. If either close after 11-12, then it will fund by the next day before noon. That is assuming there is no mail out/out of state buyer/seller where docs need to be fedex'd back. I'm a licenced TX realtor. The TREC contracts all clearly state when you get possession on the last pg, under "Closing". Look at your contract.


    Michaelis7- Did you get a cleared to close from your lender before you closed? Were there any underwriting conditions that were not met when you closed? If they were just then verifying employment, after you closed, it sounds like either title jumped the gun and let you close without meeting the underwriters closing conditions, or the lender screwed up and cleared you to close without verifying employment. Either of those may delay funding/possession.

    You may be able to ask your agent to coordinate a temporary residential lease, so you can start moving in while they wait for funding.

  • Angela Cherry McNamara
    8 years ago

    Can anyone help me on this matter...Our closing was suppose to happen friday at 11am. we called texted emailed and nothing no funds in our account here come 5pm still no funds no calls. 12 midnight no funds in our account. Next day Saturday Jan 9 we finally get an email from Realtor he said you didnt get your money yet??? Well this is what happened the closing attorney called me to come back at 5pm cause he missed something for me to sign. so i did. Meanwhile prior to this our realtor told us that the closing was over and that he gave the keys to the new owners and was wanting to know where the rest of them were. So at this time we are seeing if our neighbors can find out if the new owners are in our house...per our realtor the house is still in our possession and if they were giving the keys and the house in still in our possession can we sue the closing attorney and the realtor??? we just found out the people are in our house and the closing is not final...Can we sue.

  • loto1953
    8 years ago

    I am in Missouri and 99% of the time I get my commission check at signing of documents/transfer of funds (we call this closing)...the 1% is if the wire or check from the Lender doesn't make it to the Title/Closing company in time.

  • loto1953
    8 years ago

    Angela....Friday closings can be a PIA as lenders sometimes are running behind on wire transfers and funds don't get out in time. Hopefully your funds will be delivered on Monday and this will be a mute point.

  • kudzu9
    8 years ago
    last modified: 8 years ago

    Angela-

    Yes, things didn't work out the way they should have and, yes, you have a right to be annoyed/concerned. But go to the trouble, time, and expense of suing over this? What is the major injury when it will probably be all resolved on Monday?

  • rob333 (zone 7b)
    8 years ago

    Sue? A bit hasty.


    I will say, I had problems at my closing and didn't get my money until the following week too. It happens. I hope it all is cleared up for you TODAY.

  • midcenturymodernlove
    8 years ago

    In my area, the good closers (Title company state) have the money in the account before you leave the closing table. That's how it should be. If you aren't getting that service (unless your law differs for some reason) then someone isn't performing as efficiently as possible. As a seller, only once has it not funded until the next day. That title company was awful (not my choice). The ones I select fund at the table. They are prepared to go when you get there, as it should be.

  • bry911
    8 years ago

    Yes, you can absolutely sue for damages...which will probably be about $16 per day per $100,000 owed. If you or your representative gave the buyers keys to the property and they have moved anything into the property then you can file an eviction notice with the court to have them removed, but simply demanding the keys back can expose you to legal action. You probably gave them the right of tenancy with the keys, it may be your property but it is probably their residence.

  • loto1953
    8 years ago
    last modified: 8 years ago

    midcentury......that is great that the title companies you choose fund at the table (as it should be) but in my world a title company doesn't have much leverage over a lender to force them to adhere to contract/closing deadlines.

  • bry911
    8 years ago

    I agree with you. But in many states paperwork is signed but funds are transferred at a later date. Signing is one step of the process, transferring the money is the next step. Closing is not complete until the seller has been paid. -

    I am not sure the above is correct, title generally passes at the signing of the paperwork. Whether paid or unpaid the previous owner no longer has legal title to the residence. If the property has been vacated by the seller then the buyer could enter the property through reasonable force and seek reasonable revovery from the seller.

  • ncrealestateguy
    8 years ago
    last modified: 8 years ago

    midcentury... we all realize you despise agents, you hate bankers, and you believe that no one in this business works for the interests of others. You quite frequently paint with a very broad brush when giving advice, and frequently the advice is just plain incorrect.

    The entity that funds a RE transaction is the lender... not the title company, not the attorney and not the agents.

  • SaltiDawg
    8 years ago

    nc,

    You seemingly didn't read his/her post. Saying they "have the money in the account before you leave the closing table..." Do you somehow take away from that the lenders or the agents are the source of funding?

    YOU frequently post here and take what you see in your corner of NC as being the "norm" in the entire country and criticize those that suggest otherwise.

    You really need to gain some experience in what the rest of the real world does, and spend less time taking shots at other experienced and knowledgeable folks.

    Just sayin'.

  • ncrealestateguy
    8 years ago

    Salti, the point of midcentury's post was that title companies are the source of funding and are responsible for the funds being delivered in a timely fashion. The point of my post is that they have little or no control over this part of the transaction.

    My pointing this out is not me taking a "shot" at someone.

  • midcenturymodernlove
    8 years ago
    last modified: 8 years ago

    No, I didn't say that, NC. Of course Title companies are not the "source of funding" and I never said that at all. That would be the lender (which I made clear), which is why the Seller needs to stay all over that transaction. And who "despises" agents and bankers? Not me. However, I realize that they are merely a means to an end in the transaction (not as people, as I am sure many are nice people), and I retain control. You never let the control be in someone else's hands contractually. Sure I can't make the lender give the buyer a loan, but I can sure have a drop-dead date at which the contract dies in my Agreement and I will.

    Disregard my advice if you like, NC. I am merely posting it for the unknowledgeable or inexperienced who haven't bought, sold, renovated, and managed properties for 20 years as I have.

    Do know that the Title company closer (your point of contact) is a sometimes a great source of information as to what is actually going on in the transaction and one must cultivate that relationship. Don't let this be an agent-only thing. Retain control of your own transaction. That's my point. That way you don't ever show up at a closing until the funds are ready to be delivered to you. You've paved the way to have that knowledge in advance from the Title company closer.

    You simply do NOT show up for closing table until the loan is funded (make that clear at the beginning of the transaction) and the closer lets you know when that happens. I get on my phone at the table, and bingo, there's the money. Ok, we are good. That's how I do it. Of course, you have to eliminate silly loopholes in the Purchase Agreement that say things like, "Closing will be on or before (date) or when loan approval is granted, WHICHEVER IS LATER." Heck, no. That is essentially no deadline. I strike that latter (bolded phrase)(well, actually, remove them in a counter offer, since real estate agents are not permitted to strike provisions but only fill out forms, so they don't know what to do with that.).

    NO keys until I have the money. Show me the money.

    Right, Saltidog. He didn't read my posts but simply has a knee-jerk reaction to someone who says to retain control in the transaction (to the extent possible - as I say, you cannot force a lender to give a loan to an unqualified person, but you should never get this far) and not hand it blithely over to some agent.

  • midcenturymodernlove
    8 years ago
    last modified: 8 years ago

    I would not have handed over funds without keys here, michaelis. Change the locks, as Suzi recommends. You need to do that on day one of possession anyway. You have no idea who has keys out there, and who the heck thinks it is ok to take money but retain keys. Quid pro quo. Make sure to change the code on the garage door opener if you have an exterior keypad too. Everyone in town had ours in order to go in to assist the elderly seller.

  • bry911
    8 years ago

    I am a little unclear on some of the above details, but want to ensure that people understand the ownership change.

    The power that you have to affect a change is before signing. Once both parties have signed closing documents, all the legal risks and benefits of property ownership have been transferred. Legal ownership changes hands when the risks and responsibilities have fully changed hands, not at the point of sale (when money changes hands). Think of it this way - if the house burned down after closing but before funding, whose insurance would pay...the buyer's would.

    While it is a fairly minor thing to have a sale properly undone, it is a fairly major risk to try to do it yourself. For buyers, never change the locks until both parties have signed. For sellers, never change the locks or refuse to hand over keys after the contract is signed without written instructions from the closing attorney telling you to do so.

  • Lowell Leake
    6 years ago

    I think it all has to do with whether you are in a "wet close" vs. "dry close" state. If in a "dry close" state, from what I have read (extensive reading), funds have been transferred by Lender (mortgage provider) into Escrow, and hence Seller has them, at time of close so you should get the keys at close date. If in a "wet close" state, the funds from the bank do not have to be legally transferred into Escrow by the lender, and hence you may or may not get the keys at closing (depending on if Lender sent them to Escrow and you pre-signed documents a few days prior to closing, such as with a mobile notary service). I am also curious, because I close on 6/29 (11 days), have arranged mover, given notice (I am on street next day), and had assumed I would be getting keys day of close. I am in WA state, and on research turns out this is one of only 9 out of 50 states that is "wet close" state. Wow. Just called by Broker to figure out if I need to prepare to live on the street for a few days. In which case, at least if my county is a "wet state" wrt to mortgage closings, its also a "wet state" wrt to booze. Ha.



  • Denita
    6 years ago
    last modified: 6 years ago

    Lowell, it is the opposite of your post: in a dry state the funds are sent to escrow 1 to 3 days after the paperwork is signed so there is a delay in funding. The deed has to be recorded in a dry state before funding.

    In a wet state (also called a "table-funding state") the funds are issued at closing after the paperwork has been signed by the parties because the funding is already at the title company/attorney's office. There may be a hour delay after signing for funding, but the buyer gets the keys to the property at closing/funding and the seller gets the funds immediately in a wet state.

    There are 9 dry states in the US. Most in the western US. The 9 states are: Alaska, Arizona, California, Hawaii, Idaho, Nevada, New Mexico, Oregon, and Washington (state). The rest are wet states and funded the same day.

    In Florida, a wet state, the standard P&S contract says the seller will deliver the premises at closing and if you want it another way, it has to be specified in writing in the contract. I have had my buyers wait to sign if the seller hasn't moved out yet (rare - most are out the day before closing).

  • bry911
    6 years ago
    last modified: 6 years ago

    Wet and dry generally don't matter (at least not to this point). That just changes the time between transfer of ownership and transfer of consideration. There are states that establish a transfer of ownership that is outside either the funding or the signing date (I know of only one), but that doesn't really change anything.

    Real property has some special rules but largely it isn't different than anything else you purchase. If you write a check for a car and crash it before the check clears it is still your problem, you can't take the wrecked car back to the dealer and note that it didn't fund so it isn't your car. It doesn't matter if the check was 5 minutes from funding or 5 days from funding, it was your car and it was your responsibility whether or not you had completed transfer of consideration.

    The same rule holds true with homes. The property transfers when the rights and responsibilities transfer, if that happens an hour after the money transfers or a week before doesn't really matter. Maybe rent would be a better way of thinking of it. When a tenant would have to pay you rent instead of the other person, it is your house.

  • Denita
    6 years ago

    It is becoming moot as many of the attorney offices and title companies record the deed electronically right at closing now (here). The paperwork is signed by the parties, the funds transfer to the seller and the deed is recorded all the same day. Not all title companies, but quite a few in my area of S Florida.

  • Efrain Aponte
    5 months ago

    I just signed off on closing for my new house but closing agent wont hand out the keys for the house until wired money reflects on the account so i have to wait another week to get the keys and im spending alot of extra money i thought i didnt have to so i can keep my belongings on storage pods for longer so my question is can i make the seller liable for the extra expenses after signing and wiring of the money to title company? please let me know im located in florida and i had read that i can make then acountable for the expenses but im not sure and im scared because i dont know if they can back out last minute after closing is done and have me loose all the money i have spent on everything