One of the most overlooked components of a real estate transaction is what happens when the ink dries on the stack of documents everyone signed during the closing, but funds are not immediately available.
Buyers typically think they get keys right away upon signing. But before they can get the keys to the property they just purchased the monies need to exchange hands. In this day and age funds can often be wired to financial institutions very quickly. However, if a closing happens at 6 pm on a Friday the possibility of the seller getting paid that same day is slim to none which means the buyer isn’t getting his keys until after the long weekend. The FAR/BAR Contract states that the Seller shall deliver occupancy and possession of the Property to the Buyer at Closing. The term “Closing” is defined as when the closing documents required to be furnished by each party pursuant to the contract are delivered. Although there is no mention of delivery funds or funding in the definition of the term, the contract makes mention of funding in Section S, which defines the term “collected” referring to amounts required to close. The FAR/BAR Drafting Committee is currently working on clearing up any discrepancy as to when the keys can and should be released. The revisions to the FAR/BAR Contract were released in the early part of 2019.
Our firm is happy to provide you with ample communication and convenience to help you have a smooth real estate transaction. And that includes having an understanding of when you can expect to get your keys after you have completed your transaction.