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Closing and Possession

Colorado Springs Real Estate Contract Guide – Closing and Possession

Closing

closing and possessionThe final step in the process of buying a home is closing the transaction.  The buyer will sign loan documents and the seller will sign over the deed once the money has changed hands. In adversarial situations, the buyers and sellers may sign documentation at different times and/or locations.  In situations where one party is remote, the title company may do a “mail out” closing to that party.

Colorado Springs Real Estate Buyers:

  • Bring a current Valid ID
  • Power Of Attorney (POA) – If you are buying using a power of attorney, you must pre approve that with the title company and bring the original to closing.
  • Any down payment must be a wire or cashiers check. (DO NOT use ETF or electronic funds transfer) to try to send money to the title company.
  • Be sure you have called the utility companies at least 24-48 hours in advance to change the utilities into your name so you don’t have to pay any re-connection fees.
  • Watch for scams! After closing you will get letters that look very official saying you send them 80-100 dollars and they will send you a copy of your deed. You get a copy of your deed with your closing documents and the original will be mailed back to you after recording.

Colorado Springs Real Estate Sellers:

  • Bring a current valid IDClosing2
  • Don’t forget extra keys and don’t forget the garage remotes out of the cars!
  • Don’t forget receipts for repairs!
  • Don’t forget to leave the manuals warranties and papers about the house in the home.
  • Make sure to tell the buyer which mailbox number it is (if it is a community mailbox)
  • Don’t forget to give them any alarm codes or keypad codes.
  • Don’t forget to call utilities to schedule shut off.

Possession

possessionIn Colorado Springs, it is customary for possession of the home to be transferred at the closing table from the seller to the buyer.  This is the simplest practice as it ensures that there are no problems with home buyers or home sellers damaging property after ownership changes hands.

Sometimes, the seller will move out a few days after the closing.  This is not a recommended practice as a lease should be in place with damage provisions in case there is damage to the home during move out.  Since damage assessment is subjective, this can cause problems.  In addition, all insurance companies need to be notified with home owner and renter policies in place to ensure any damage is covered.

If a home buyer does not need to take possession immediately and the home seller wants or needs to stay longer, sometimes the home seller may lease back the property for an extended period of time.  This can get complicated if you are purchasing a home as your primary residence because the lender typically requires that a homeowner takes possession of the property within 30 days of closing.  If you are interested in pursuing this, you need to ensure that your lender clears this and that you have a proper lease and insurance policies in place.

The final option is for the home buyer to take possession before the closing (meaning the home seller still owns the home).  Again, in this scenario the home owner should notify their insurance company of this scenario because specific policies need to be in place.  The home buyer should also have renters insurance in place as well.  In addition, there should be a specific lease in place designating terms.

Colorado Springs Real Estate Seller:

  • Any form of possession before closing can cause a nightmare because you may have to go through the eviction process to get the buyer out if they cannot close for some reason and do not leave willingly.
  • Even allowing them to drop some stuff off early in the garage constitutes possession. Be careful.

Colorado Springs Real Estate Buyer:

If a homeowner does allow you to take possession. Be prepared to sign a lease, give a damage deposit, and have renters insurance in place.

If you have a specific question not covered on this site, please contact me.

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