When Should You Hand Over The Keys?

Many sellers think their ownership responsibilities are over once they sign their closing documents.  This is not true.  The buyer becomes the legal owner when the county transfers the property deed from the seller to the buyer.  If you sign closing documents the morning of closing day, this transfer will probably happen within a matter of hours.  But, if there are complications, several days may go by before the transaction closes.

Be very careful handing over the home keys to the buyer before the transaction has officially closed.  The seller is still responsible for the property until the deed transfers to the buyer.  If the buyer gets access to the home prior to closing and causes damage, the seller will have some explaining to do when they file a claim with their homeowner’s insurance company.  There is a chance the insurance company may not cover the damages.

The safest thing is to hand over the keys once the transaction has closed.  Sometimes, a buyer may request “early occupancy” as a condition of the sale.  Talk with your real estate agent about the pros and cons of this arrangement.  Make sure you document this arrangement in the purchase and sale agreement so there are absolutely no ambiguities.  This will end up essentially being a short term rental agreement sandwiched into the purchase and sale agreement.

Often, buyer and seller make assumptions and think they have a meeting of the minds.  It isn’t until both parties try to put it in writing that they realize how far apart they actually are.