In our market after the signing/closing appointment, the transaction funds & then the transaction records & THEN the buyer gets possession. this can take up to 4 days after signing.

This makes it tricky planning moving & possession when a sellers purchase is contingent on the sale of their previous home, etc. One must fund before the next one can, like dominos. Transactions can get stacked up.

So, my buyer has signed for their closing & is going to have to "rent" the home they just closed on to avoid having a packed U-Haul sitting around & paying for a hotel for a a few days.

Do you ever have this situation? If so, how do you handle the short term rental agreement & how is the seller compensated for renting to their buyer, if at all?

TIA!

If it is only for a couple of days, the best way to handle it is in the initial contract - put possession as Recording plus 72 hours or whatever time you need. that way the buyer is aware that they don't get possession for a couple of days.

The way it's usually done is you close the sale and the purchase on the same day. The next day all the money meets up at title. The title company then closes the sale first and then 10 minutes later closes the purchase. So technically the seller is only without a house for about 10 minutes. You can sign papers before the money is there and then it just sits there waiting for the proceeds from their sale.

We do possession after closing and funding. I can't imagine waiting until it's recorded. Is Utah really that weird?

Where I come from possession if after funding as well.

That is weird. In my state of Georgia the buyer gets the keys the same day and it is closed.Our closing attorneys(I know most states use title companies) will make sure funding has occurred at closing before signing all the documents.

Technically you don't have to record something for it to be legal. The recording is just a (notice to the world) of ownership of a certain date and time in the history of the title.

Recording in some of our counties takes weeks to months depending on how backed up they are.

Every state handles closing and possession different. Where I work - in Denver - a 3-day following closing possession is very normal and expected. But often buyers came in from other states and were horrified that the sellers expected them to wait 3 days after the closing.

Utah is one of those states I really don't understand - I mean - how can you make moving plans when you don't know exactly when you can take possession? And how on earth does a seller buy a replacement home if he doesn't get his proceeds at the closing table? Obviously it's done every day, but it sounds dreadful to me.

As far as renting the house for the possession period - I have to assume that there is a local custom to handle this; yours isn't the first, right? Or am I missing something?

sounds like lazy title companies or attys. request a closing at the registry and record & fund immediately thereafter. this is likely and issue of re-checking title just before registering. delay wouldn't fly here.

In AZ, possession is after it records, which can be the same day as funding if funded early enough. Usually takes no longer than one business day from funding.