In a frantic bidding war , I sold my home in San Jose and am purchasing a home in Utah. The seller is using a relocation company and they have said that under no circumstances are we to occupy the property prior to us actually owning it. (I'm cool with that.)

Here's the deal. Escrow is scheduled to close on Thurs, Sept 2nd. I was told by the selling agent that they will record on Friday, but we can't take posession until Saturday at 5 PM! (Even though the sellers will have moved out earlier in the week.)

What's up with this? When is the property actually mine? I would like to schedule a moving truck to deliver my things Saturday morning, as they REFUSE to start a major unloading project at 5PM on a Saturday night!

Anyone know what the law is and would it be any different in Utah that other areas?

Thanks!

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GEEK used to be a 4-letter word. Now it's a 6-figure one!

Sounds like someone is confused.

While relocation companies manage thousands of real estate transactions annually their employees are essentially clerks, not attornies, real estate licensees, but usually hourly wage folks doing what someone up the corporate ladder has told them.

Once you pay them, they give you a deed, and that deed is recorded you effectively own that property at that time.

Insist on getting the keys as soon as you know the deed is recorded.

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Jim Lee, CRS, ABR, GRI, e-PRO
Realty Executives Associates
Knoxville, Tennessee
http://www.KnoxvilleMLS.com
Jim@KnoxvilleMLS.com
1999 REALTOR of the year, Knoxville Association of REALTORS

I am not an attorney, I am not your attorney, and I am not giving you any legal advice. This response is only given for informational purposes and should not be construed or substituted for legal advice.

This certainly does not sound right. If you close on Thursday and all papers are signed, the title company will immediately record the deed at the County. The only party who could delay the recording would be you (Purchaser) in which you would never want to delay.

The only way for the seller to remain at the property after closing is if it were agreed and signed by both parties. Possession clauses in standard purchase agreements will be given. Most common is that possession by the buyer is IMMEDIATELY after the closing. However, like in your case, posssession can be agreed to such as "... on Saturday, Sept 5th, 5:00PM."

Buyers should be aware that after closing they own the property and having "tenants" remain after close could pose potential problems.

I am not an attorney and am not giving legal advice. Always consult with an attorney on legal matters.

Thanks for the responses. Yeah, I went back and read my contract and it says...

"Seller shall deliver physical possession to the Buyer within 24 hours after closing."

So by the above terms, if we close by noon on Thursday, I should have possession no later than noon on Friday.

There's some other things that are going on that are not exactly up to snuff, but I'll have to elaborate on that when I have more time.

Cheers!

NEXT TIME.... you may want to consider a requirement that the sellers will have vacated the property in broom clean condition 24 hours prior to closing at which time you would do your Final Walk through Inspection... Prior to Closing...

That way if something has been hidden or some attachments have been removed... you can clear the problem before you close.

Having a Seller occupy a property ANY time after closing is in general a very bad idea, too much liability for both parties.

Keys should be exchanged for the check when you sign the Hud-1.

In Texas, most of the time possession takes place at closing and funding of the transaction....and sometimes funding takes a day or two. It has nothing to do with the recording of the deed.

Yeah, I think I got it worked out after spending most of the night pouring over the contract. It seems in Utah, they have 2 critical dates called "SETTLING" AND "CLOSING". (You guys probably already know this!)

On or before the SETTLE date, (which my contract had Friday 9/3 written in) [liberally paraphrasing]:

1. Buyer and Seller have signed and delivered all docs to the escrow/closing office.

2. Buyer has paid all money required (except for new loan money) to the escrow/closing office.

3. Seller has paid all money required to the escrow/closing office.

Once these happen, then you are considered "SETTLED". THEN 2 more things must happen to be CLOSED (and the standard contract says they have up to 4! calendar days to perform these once Settlement has occurred.)

1. The proceeds of any new loan have been delivered by the Lender to the escrow/closing office.

2. The applicable closing documents have been recorded in the office of the county recorder.

Where I had an issue is my contract said "Seller shall deliver physical possession to Buyer within 24 hours
after Closing." (Where "24" was written in.)

Also, in the TIME IS OF THE ESSENCE Section, it basically said, if a date is referenced, then actions MUST be performed by 5 PM Mountain Time on that date.

Put this all together and I was possibly heading for a disaster with the moving company I hired (which is scheduled to start moving me in Saturday morning). Assuming we didn't CLOSE on Friday, we wouldn't be able to CLOSE until Tuesday, with Monday being Labor Day.

Again, assuming they couldn't record until the afternoon, 24 hours later puts us on Wednesday, but the moving company WONT start an unloading project late in the day, so they would have to hold our stuff until THURSDAY!

Fortunately, (with you folk's help) I was able to see this coming. There is an Addendum circulating now that will move up the SETTLE date to Thursday and have the CLOSE no later than Friday. The 24 hours has also been waved. (Which IS a stupid thing, as a couple of you had pointed out, because at CLOSING, I *OWN* it and should be able to move right in.)

BTW, this does not affect our walk-through or anything like that, my main concern was getting my crap off their truck before the long weekend.

It was also not a matter of having the place occupied either, as the sellers will be long gone by then. The problem was the relocation company, as they are sticklers on the contract, with very little flexibility, and it's THEY who will authorize the release of the actual keys to me.

Thanks again!

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GEEK used to be a 4-letter word. Now it's a 6-figure one!