In some cases, when a person buys a piece of real estate, they take possession of it as soon as they close on the property. The closing may be carried out at the office of a local title company, for example. Numerous documents have to be signed, the contract has to be reviewed, the keys change hands, and the new owner can leave and almost immediately enter the new property.
But many people assume that this is how it works in all cases, and that can be a dangerous assumption to make. The reality is that the possession date and the closing date do not have to be the same, and you should never assume that they are. It should be spelled out clearly in the contract when the buyer will actually take possession of the real estate after the purchase has been completed. That could be on the same day as closing, but it could also be days, weeks, or even months later.
Why would it be delayed?
It all depends on the specific situation and how the contract was written. But there are a number of potential reasons why a seller may want to delay possession.
For instance, many people who are selling residential real estate still need to move out and buy another house after selling the home they currently own. They may not want to buy a new home in advance, because that could leave them with two mortgages and may not be affordable.
Instead, they may delay the possession date in the contract, giving themselves time to purchase a new property. After the sale of their current home has been completed, they may have a better idea of what type of down payment they can make on the next home or what they can afford.
The legal process
The key is to understand exactly how the contract is written and what provisions it contains. There is no one-size-fits-all answer, so it is critical that both buyers and sellers carefully review all paperwork during a real estate transaction. They need to know what steps to take and what legal rights and obligations they have.