Once again this is a very confusing item, especially to first time home buyers. Lots of buyers make a mistake thinking they would get up from closing table, signing paperwork, get the keys and go move in.
Your Agent should explain to you up front on the day of the offer. Pull out a calendar, look at the dates yo are proposing. If you settle/close on Friday, the Buyer will not get the home until Monday or Tuesday, that is if Monday is not some type holiday. If you want to move on a weekend, I recommend to close on Wed. or Thurs.
There are lots of items to consider which is beyond Agent's control, for instace non conforming loan may ake even longer to close.
If I represent sellers, I do not recommend to give a possession to buyer before the house closes. Does it happen? yes. Is it risky? yes.
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Marina Vialtsina
Showing posts with label possession. Show all posts
Showing posts with label possession. Show all posts
Saturday, May 3, 2008
Friday, May 2, 2008
Settlement and Closing...Settlement vs. Closing
Settlement shall take place on the Settlement Deadline.
If the date is being moved earlier or later, not to be in default, both parties should agree in writting, creating an addendum. See you agent on that or me.
What is Settlement?
1. Seller and Buyer have signed and delivered to escrow/closing office all documents required by this Contract, by the Lender, by written escrow instructions or by the applicable law
2. any monies required to be paid by Buyer under these documents (except for the proceeds of any new loan) have been delivered by Buyer to escrow/closing office in the form of collected and clear funds
3. any monies required to be paid by Seller under these documents have been delivered to escrow/closing office in the form of collected and clear funds
4. Seller and Buyer shall each pay 1/2 of the fee charged by the escrow/closing office for its services. Taxes and assessments for the current year, rent, and interest on assumed obligations shall be prorated at Settlement as set forth in this Section. Tenant deposits (including but not limiting to security deposits, cleaning and prepaid rents) shall be paid or credited by Seller to Buyer at Settlement.
The transaction will be considered closed when Settlement have been complete...So, Settlement is not the same as Closing. And, for seller, it is not recommended to give possession after settlement because the house is not sold yet.
What does it take to Closing to be complete?
1. the proceeds of any new loan have been delivered by the Lender to escrow/closing office
2. the applicable closing documents have been recorded in the office of county recorder.
How long does it take?
Two actions descibed above shall be completed within 4 calendar days; otherwise, seller can cancel the contract and keep the earnest money. (Usually it takes about 48 hours)
In Summary, Settlement=everyone has signed the paperwork
Closing=moeny is there and transaction is recorded
If the date is being moved earlier or later, not to be in default, both parties should agree in writting, creating an addendum. See you agent on that or me.
What is Settlement?
1. Seller and Buyer have signed and delivered to escrow/closing office all documents required by this Contract, by the Lender, by written escrow instructions or by the applicable law
2. any monies required to be paid by Buyer under these documents (except for the proceeds of any new loan) have been delivered by Buyer to escrow/closing office in the form of collected and clear funds
3. any monies required to be paid by Seller under these documents have been delivered to escrow/closing office in the form of collected and clear funds
4. Seller and Buyer shall each pay 1/2 of the fee charged by the escrow/closing office for its services. Taxes and assessments for the current year, rent, and interest on assumed obligations shall be prorated at Settlement as set forth in this Section. Tenant deposits (including but not limiting to security deposits, cleaning and prepaid rents) shall be paid or credited by Seller to Buyer at Settlement.
The transaction will be considered closed when Settlement have been complete...So, Settlement is not the same as Closing. And, for seller, it is not recommended to give possession after settlement because the house is not sold yet.
What does it take to Closing to be complete?
1. the proceeds of any new loan have been delivered by the Lender to escrow/closing office
2. the applicable closing documents have been recorded in the office of county recorder.
How long does it take?
Two actions descibed above shall be completed within 4 calendar days; otherwise, seller can cancel the contract and keep the earnest money. (Usually it takes about 48 hours)
In Summary, Settlement=everyone has signed the paperwork
Closing=moeny is there and transaction is recorded
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