The process can become complicated if you need to sync up your move with the closing date. For a first-time buyer, delaying closing might sound like a headache, but Edie Waters, a Kansas City agent with 25 years experience under her belt, says itâs a non-event for most agents. Your closing date can make or break your move. Between signing the purchase agreement and handing over the keys to the new owner, you may experience a change in the closing date. The buyer simply needs a few days to resolve last-minute loan issues or scrape together some extra cash for closing. Here are some potential downfalls that can be faced with early buyer possession from the perspective of the seller. All we were waiting on was seller payoff. Do whatever you can to make the seller follow through. Since both a buyer and a seller agree to a target closing date in the purchase contract it is great when a closing actually happens on or before that date, but it isnât always possible. Closing dates may be set by the real estate contract, but the lender is not a party to the real estate contact so they aren't bound by those dates. We asked for permission to move possessions early in with the understanding that the house does not belong to us and that the seller is not liable for damage or lost/stolen property. The closing date is when all paperwork is finalized, closing costs are paid, the title is transferred, the buyer receives the keys, and the seller is free from the property. 5 Penalties for Missing Your Closing Date 1. 1) After the buyers move in why should they close right away? Your closing date will be officially set by the attorney handling the transaction. One sure fire way to speed up the closing date even before you have begun your search for a home, is to get re-qualified for a mortgage of a certain amount. i agree, MOST of the time both parties are reasonable because ultimatley the seller wants to sell the home, however, I beleive the original question was does either the BUYER or SELLER HAVE TO agree to extend the closing and the answer is NO, they do not. One solution is to go ahead with the closing, but have the buyer rent the property back to the seller for a short period to give him or her time to move out. Both you and the Seller will come up with a closing date which seems reasonable. Theyâre living in your house for free. If your buyer needs a 60 or 90-day rate lock to meet your closing schedule, that is going to cost money. Rather, you stand to face a penalty from the seller for the delay. Your buyer is likely going to want to lock in their mortgage rate, especially with rates as low as they are right now. A Closing date is established on the purchase agreement. In some cases, the sellers may need more time in the home after closing while they finalize the purchase of their future home. Anyone else experiencing this recently? But as a seller it's time and $$$$.$$! Maybe the closing date is the last day of the month, a notoriously difficult day on which to hire a moving company. There are many reasons why a real estate closing can be delayed or even worse, cancelled. The offer will specify not only your closing date but also your occupancy date. In some cases, this coordination can be an especially delicate process. There is no reason the buyer should be waiting on the seller. lol I mean if I was a buyer it wouldn't be so bad, just waiting. If the transaction craters, there should be a pre-agreed move-out date that includes a penalty. My situation was that I still had items in the house and had been trying to get it all packed up. The Closing date for your new home might not be the date listed on the contract. This happens more often than not, and that is why the language in the contract is usually written âas on or about.â Times when the date on the contract would be the actual Closing date. When the buyer makes the offer, they can request that possession be the date escrow closes, but this is rarely done since that would mean the seller basically had to have most of the move completed before they knew for sure escrow would close. What would stop them from coming up with excuses to delay the closing 30 days? You Could Face a Per Diem ^^^I don't like your answer! Your purchase agreement also may state that a buyer who misses the original closing date must pay the seller a penalty, such as a flat fee or a daily charge for each day past the original closing date, compensating the seller for additional tax, insurance, and mortgage payments in the interim. As a buyer, you shouldnât be alarmed if this happens â in fact, itâs best to be prepared for it no matter what. Getting this all done in advance should give you an idea of what your price range for a home is. If you can't move by the closing date on your home, one important possibility is to ask the buyers for something called a "rent back," allowing you to stay in the home even after the closing. Second, the buyer and seller can sign an amendment agreeing to extend the closing date until a new date when the seller will be gone. Closings usually happen when the loan is ready to fund. Contingencies protect you as a buyer from surprises that crop up before closing. There are a lot of factors that can trip you up when you are looking for a loan. When the close date is missed, 9 out of 10 times itâs the buyerâs fault. This is especially true if you are self-employed. Typically, lenders will allow a 30-day rate lock at no cost. There should be a damage deposit and a Move-in, Move-out report as a part of the rental agreement. Help! Even worse, the buyerâs boyfriend ended up with all her new furniture because it didnât fit in her existing home. Generally, this is 30-45 days from offer acceptance. If a seller agrees to allow a buyer to move in before closing, both parties need to be aware of the potential issues that could occur in this impractical situation. A court might order the contract to be extended, to give the buyer more time to obtain financing. âNormally the post-closing agreements have an outside date by which the seller must move out or pay a per diem amount for each day the seller does not vacate after the outside date,â she says. I understand his logistic issue and would like to help, but worry about insurance and legal issues. I actually just experienced the same thing representing the buyer. Or is ⦠Has anyone done that? The occupancy date will be the day that you move into your home. You can certainly ask for something in return to change the closing, such as contributing towards closing costs as a credit/concession etc. Might not be the same in ALL states. First, the buyer can move the closing until the end of the day to give the seller more time to remove his or her possessions. Buyer needs to close selling his current house in the morning of closing date, then will close buying my house in the same afternoon. How long you have to move after closing on the sale of your house depends on the terms you negotiate with the buyer. We were planning on leaving 6 days before the requested close date and driving 1200 miles to our new city. I'm going to talk to my attorney in the morning, but wanted to get an idea of what my options are. And sending a nice fruit basket to the seller isnât going to cut it. I want to do it legally. The Normal Time to Move After Closing on a House. Consider these five items when choosing when to close. When you write an offer on a home, the real estate agent will ask you to request a closing date as well as an occupancy date. Is this a good idea? Agree to a delayed post-closing move-out date with the seller, and keep some of the closing funds escrowed until theyâve fulfilled their end of the deal. From what I was told its stuck in underwriting and the appraisal both times are ordered after the dang closing date! A property can close early if all parties agree in writing and all contingencies are met. Buyer wanting to move the date posts a huge burden on us, but he said it's needed because of something with his FHA loan (seriously never selling a house to someone with one of the loans ever again). The buyer wants to move furniture in before closing? The closing date is determined prior to signing the contract, based on conditions and contingencies. It delayed our closing over a week which really should not have been an issue. The legal term for these per diem costs is liquidated damages. What Happens When The Buyer Misses the Closing Date? Learn what terms to include in a rent-back agreement with the buyer of your house. Most sellers will balk at this, since there are numerous horror stories about buyers bailing out of an escrow at the last minute. However, ⦠Buyer asking to move the closing date by a week and a half. I have a signed contract with a closing date "on or sooner" than Jan. 18th. If someone really wants to sell how can they not be ready. Right, until something is lost or stolen. A date is normally filled in when the offer to purchase is made by the buyer. Buyer wants to move in his personal belonging to my house 2 days BEFORE closing date. I want the house and don't want to walk away. 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