Possession at The Closing Table

You're buying a house and there's an issue of when you get it. You have a closing but when do you get possession of the house? Here's some issues to keep in mind for buyers and for sellers. And this varies from market to market, area to area. If the house is occupied and your getting possession at closing, technically you're going to have a larger much larger deposit to compensate you. The seller is taking a much larger significant risk of moving out prior to the closing because you're getting it at the closing, house has to be empty. So, they're taking significant risk whether you're gonna show up or not, something happens, change your mind or whatever. So even if you break the contract, what are they gonna do, sue you? What are they gonna get? But they have a much larger deposit to compensate that risk. Here's the pros and cons for each side of the transaction. The seller, clearly it's as I just described. If you're leaving what's your exposure and what's your risk? For a buyer, it's fairly simple. If you get possession after closing, every day they live there they're living there for free unless they're compensating you. So for a couple days not just a big deal. But if you're giving possession for a longer, extended period of time, some kind of rent or even a lease agreement would make sense. The other risk for the buyer is the seller takes things or damages things. Doesn't happen often and, again, you can't get rid of all risk in a transaction. But there are situations, I have seen it once or twice where a seller moves out of the house and takes the good fridge from the kitchen and sticks in the crappy fridge from the garage in its place. If at possession of closing, clearly you would be in control. You walk through the house, you see it. Refridgerator is gone. You go to the closing, you have all the money, you can exert influence and control. If it happens after the fact, really what are you going to do? Take them to court. So if you go through the whole idea of possession at closing, understand what's involved. If you're a buyer and a family's living there, unrealistic and less likely that you'll get possession at closing. Giving a few days, really not such a bad thing. In particularly if you're going to try to get something earlier, remember having a larger deposit would make more sense.