You searched for the right home – and found it! You got the home under contract and worked through the entire Home Buying Process to bring you to the day you have been looking forward to: Settlement Day! You worked hard and you want the KEYS to what is yours. So when do you get the keys to your dream home?
Seems like this would be a pretty easy question to answer, but it really depends on the state that you are closing in, and how that state handles defining the term “settled”, or when escrow has occurred. Most often this has to do with the way the money is funded and disbursed, and how the Deed (the paper work that deems you are the owner of the property) is recorded and recognized in your state. Since we are located in Virginia, we can tell you exactly how it is dealt with here. Then you can prepare for the other BIG day – MOVING DAY.
Typically, keys are given after verification that the funds have been delivered to the title company and all of the required documents are signed by both Seller and Buyer. At that point, the Seller will pass over ownership of the property and provide the Buyer with the keys to the property. Hooray! The moment has arrived and you are now the lucky owner – and key holder – of your dream home!
There are occasions, however, when getting the keys and moving right in is not possible:
The Seller needs to stay in the home. Logistically, it can make sense for 
the Seller to sell their home and then buy their next home. Physically, though, this can be a real challenge. Offering the Seller to stay a couple of extra days after settlement could be just what they need to make selling their home to you easier. In this case, you (the Buyer) will be offering a “rent back”. This is done through a signed agreement (a Post-Settlement Occupancy Agreement) that states they will stay in the home for a specified period of time, for a certain amount of money, and will be exiting the property on a specified date.
So does this mean you get keys or not? In most cases the Seller will agree to give you one set of keys with the understanding you will not need to access the property until the specified date that they will be exiting the property. Once they have exited the property you will be able to re-inspect the home and take possession based on the terms in which you both agreed to. This is pretty common and often occurs with little to no issues.
The home is vacant and you want to move in early. Is this even possible? 
Technically it is, however we often do not recommend it due to many various risk factors that could make this a bad idea for both the Buyer and the Seller. There is a possibility that something unforeseen happens and the deal does not go through at the last minute. Or worse, if something tragic happens to the home while the Buyer is occupying it and the Seller is still the owner. This would create a potential insurance nightmare. The reasons this could be a bad idea are numerous, however if you and the Seller are prepared to face these risk and are able to come to mutual agreeable terms, this is an option and does occur from time to time. It would be similar to the “rent back” method and it is called a Pre-Settlement Agreement.
“Key” things to remember for Settlement Day:
Utilities: Turn the utilities on in your name the day of settlement to prevent a them from possibly being shut off. Remember: utilities cannot be turned on over a weekend.
Deliveries: Do not schedule to have anything delivered or done to the home the 
day of the settlement in the event something unforeseen causes a delay.
Be Prepared: From time to time, Settlement Day can run longer than expected. However if you plan for extra time in advance, it can make the day run a lot smoother and less stressful than if you are trying to get to an important work meeting directly after. We hope for the best, yet are prepared for the worst.
Accept the keys and take ownership of your dream home!
The JS Realty Team get deals done and homes get purchased every day! If you’re ready to buy or sell a home, contact us today!
The JS Realty Team – not only serving Brambleton, serving all of Northern Virginia.
