Here’s the situation: my husband and I are selling our home. Our closing is coming up at the end of this month, and at first, I thought it was a great idea since it’s a clean cut with property taxes and works with our timeline. But now I’m worried that we truly won’t be closed and funded at the end of the month because of New Year’s. I don’t feel comfortable letting the buyers have keys to our home if we don’t see the funds or at least proof of funds released after both parties sign. Neither side has agents representing us, and we’ve mostly been working with the buyers directly, with the title company they selected handling the rest. Should we: (1) sign and leave the keys in a lockbox, knowing that funds probably won’t show up until after New Year’s, or (2) sign and withhold keys until the funds appear? The first option is there because we will be out of state by closing day, and a mobile notary is involved, so withholding keys would mean we’d have to move our stuff and come back. Has anyone else closed before at the end of December and willing to share their experience? I’m open to any other advice or risks I should know about. Thanks!
Don’t sign until the money is available. Don’t let them move in until everyone has signed.
Thanks! How would I know that money is available before signing… on the CD?
Uma said:
Thanks! How would I know that money is available before signing… on the CD?
The closing attorney will know.
Talk to your agent, they will know best. Personally, no matter what they say, I wouldn’t want to give up the keys until I know the loan is fully funded. Even if that pushes closing into the New Year, just prorate them as seller credits for the days owed.
Thanks! Neither side has agents representing us, and in hindsight, I totally should’ve had one. Both buyers and title are saying they aim to close and fund on 12/31. How likely is it that we’ll see funds appear that day if they wire the funds and everything is complete before 2 PM?
@Uma
This really depends on both the bank sending the wire and the bank receiving it. I’m not an expert, but I’ve had wires for large amounts go through in under an hour. I’ve heard of wires getting held up for days too.
@Noor
So, once the title agent confirms receipt of funds, that’s when you’d feel comfortable handing everything off?
Texas Realtor here. I would not hand over the keys until it’s fully funded. Too many unknowns can go wrong, and they don’t legally own the home until it’s funded and recorded.
The title company will tell you if it’s funded or not. I’m surprised you even have these questions while using a title company; someone isn’t communicating.
Floyd said:
The title company will tell you if it’s funded or not. I’m surprised you even have these questions while using a title company; someone isn’t communicating.
That’s exactly what’s happening… I have to email and call the title company to see what’s going on in our timeline.
If you’re not using agents, definitely talk to the title company about it. It depends on your state, but in mine, the title company receives and distributes all funds. Wait until the buyer’s funds have been officially received before you sign.
@Val
Thanks for the advice! I’ll make sure to follow up with them.