Closing and Possession

During: Buying Process Overview: Contract to Close: Closing and Possession

Contract to Close

The following is a visual representation of the Closing and Possession process when buying homes as a Nomad. It is part of the Contact to Close process that you’d use once you are under contract to buy a property.

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  1. Complete "Contract To Close" checklist
  2. Class Watch "Contract to Close" Recording of Live Class
    Watch the recording of the live presentation of "Contract to Close" available on:

    https://RealEstateFinancialPlanner.com/contract-to-close/

    ClassesContract To CloseUltimate Nomad ChecklistWeek 60Week 8

  3. Complete "Contract To Close: General" checklist
  4. Complete "Contract To Close: Title" checklist
  5. Complete "Contract To Close: Owner’s Association" checklist
  6. Complete "Contract To Close: Seller's Property Disclosure" checklist
    Complete the "Contract To Close: Seller's Property Disclosure" checklist:

    https://RealEstateFinancialPlanner.com/sellers-property-disclosure/

    Since the "Seller's Property Disclosure" is often provided even before we write the offer, it is not uncommon that we use "Completed" for the date of this deadline. However, if we have not received the "Seller's Property Disclosure" prior to writing the offer, we often use "MEC + 3 Days" so that you can ideally get a copy of the "Seller's Property Disclosure" prior to your inspection.

    This is especially important since there is not an objection for the "Seller's Property Disclosure"; you'd need to object based on your inspection if you found something at the property that you learned about via the "Seller's Property Disclosure".

    Contract Deadline: Seller's Property Disclosure DeadlineContract To CloseContract To Close: Seller's Property DisclosureSellers Property DisclosureUltimate Nomad ChecklistWeek 13

  7. Complete "Contract To Close: Loan and Credit" checklist
  8. Complete "Contract To Close: Appraisal" checklist
  9. Complete "Contract To Close: Survey" checklist
  10. Complete "Contract To Close: Inspection and Due Diligence" checklist
  11. Complete "Contract To Close: Closing and Possession" checklist

Contract to Close:
Closing and Possession

And, here is the visual representation of the Closing and Possession process.

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Let’s look at each step in more detail.

Complete "Contract To Close: Closing and Possession" checklist

Contract To CloseContract To Close: Closing and PossessionUltimate Nomad ChecklistWeek 13

Closing Date

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The Closing Date is the deadline to close.

  1. Complete "Closing Date" checklist
  2. Verify acceptable funds with Title Insurance Company
    Verify with the Title Insurance Company whether they will accept a cashier's check for closing or if you will be required to wire funds for closing.

    IMPORTANT NOTE: If you are wiring money to the Title Insurance Company for Closing you should always get wiring instructions straight from them by calling them. Do NOT rely on emailed wiring instructions without verifying them by calling the Title Insurance Company or in person.

    Closing: Prepare For ClosingContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 12

  3. IF YOU WANT TO READ EVERY DOCUMENT: Read closing documents prior to Closing
    Some clients want to read, word-for-word, every document at Closing. If this is you, let us know as soon as possible and we can try to request a copy of the entire closing document package so you can read them in advance of Closing.

    Then, at Closing, you can quickly compare them to the ones you've read to make sure they're the same ones and sign them.

    Only about 1 in 50 clients do this so it is relatively uncommon.

    Closing: Prepare For ClosingContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 12

  4. REAL ESTATE BROKER: Coordinate with Lender and Title Insurance Company amount you need for Closing
    Your Real Estate Broker should coordinate with your Lender and the Title Insurance Company to find out how much you'll need to bring to Closing.

    Great Lenders will do this for their clients as well. Some don't.

    Closing: Prepare For ClosingContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 12

  5. REAL ESTATE BROKER: Coordinate and scheduling Closing time
    Your Real Estate Broker should coordinate with you, the Seller, Seller's Real Estate Broker and Title Insurance Company to schedule a time for Closing.

    Closing: Prepare For ClosingContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 12

  6. REAL ESTATE BROKER: Coordinate and scheduling final walkthrough
    Your Real Estate Broker should schedule a final walkthrough of the property just prior to Closing.

    Closing: Prepare For ClosingContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 12

  7. REAL ESTATE BROKER: Review and approve Settlement Statement
    Your Real Estate Broker should review your Settlement Statement to check to make sure it matches the terms of your "Contract to Buy and Sell Real Estate" that was agreed to and, additionally, verify the pro-rations.

    Your Real Estate Broker will not know the terms and agreed to expenses of your loan so you'll want to review those numbers with your Lender.

    Closing: Prepare For ClosingContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 12

  8. Review expenses related to your loan with your Lender
    Your Real Estate Broker will not know the terms and agreed to expenses of your loan so you'll want to review those numbers with your Lender.

    This is usually done a few days prior to Closing in an ideal world with a great Lender. Often, it happens the day before or even the day of Closing. Some less-than-great Lenders never do it unless you insist they go over it with you.

    Closing: Prepare For ClosingContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 12

  9. IF TENANT OCCUPIED: REAL ESTATE BROKER: Provide an "Assignment of Leases"
    If you have a tenant in the property and you're buying the property with a lease in place, your Real Estate Broker should provide you with an "Assignment of Leases" that assign the rights of the current Landlord to you at Closing.

    Closing: Prepare For ClosingContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 12

  10. Schedule babysitter to watch kids for Closing
    You'll want your full attention for the hour or so it takes for Closing, so please schedule a babysitter to watch your kids during your scheduled Closing time.

    Closing: Prepare For ClosingContract Deadline: Closing DateUltimate Nomad ChecklistWeek 12

  11. Schedule time off from work for final walkthrough and Closing
    Walking through the property before Closing takes about 5 minutes, but you'll need time to travel there and the to Closing as well. Closing will take about an hour, so please schedule time off from work to accommodate your Closing time.

    Closing: Prepare For ClosingContract Deadline: Closing DateUltimate Nomad ChecklistWeek 12

  12. Complete final walkthrough of property just prior to Closing
    We recommend you walk through the property for about 5 minutes just prior to Closing to make sure that the property is still standing. This is NOT another inspection, but just a quick check to make sure all is how it should be.

    We like to schedule this just prior to Closing so about 30 minutes or an hour before Closing depending on how far the property is from the location for Closing.

    You'll usually meet your Real Estate Broker at the property for this final walkthrough prior to Closing then head directly over to Closing after.

    Closing: Prepare For ClosingContract Deadline: Closing DateUltimate Nomad ChecklistWeek 12

  13. Bring to Closing
    Bring the following with you to Closing:

    • 2 forms of photo ID
    • Your checkbook - sometimes there will be a last minute adjustment to the closing numbers resulting in a small shortage that the Title Insurance Company will accept a personal check for
    • Your funds required for Closing (usually a certified check)

    Closing: Closing FinancingClosing: Closing Real EstateContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 13

  14. Attend Closing
    Attend the Closing.

    Be sure to bring certified funds, two forms of ID and your checkbook.

    Mark this task complete after Closing.

    Closing: Closing FinancingClosing: Closing Real EstateContract Deadline: Closing DateDown PaymentUltimate Nomad ChecklistWeek 13

Possession Date

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The Possession Date is the date deadline for seller to give possession of the property to buyer.

  1. Complete "Possession Date" checklist
  2. Change address and get mailbox key at United States Post Office
    You'll want to change your address with the United States Post Office.

    If your mailbox is locked, you'll need to bring your deed (which you'll receive at Closing) down to the United States Post Office to get a new key.

    Contract Deadline: Possession DateUltimate Nomad ChecklistWeek 13

  3. Complete "Change of Addresss" checklist
  4. Schedule moving truck and movers
    If you're using a moving truck and hiring movers to help you move, you'll want to schedule those in advance of your Possession Date so they're ready for you when you get possession of the property.

    Contract Deadline: Possession DateUltimate Nomad ChecklistWeek 13

  5. REAL ESTATE BROKER: Provide you with a list of locksmiths
    Your Real Estate Broker will typically provide you with a list of locksmiths so you can have the locks rekeyed at your property.

    We strongly recommend you rekey the locks to your property as soon as possible.

    Contract Deadline: Possession DateUltimate Nomad ChecklistWeek 13

  6. REAL ESTATE BROKER: Provide you with a list of utility providers
    Your Real Estate Broker will typically provide you with a list of utility providers for your property so you can call and have them put into your name.

    You should do this about a week prior to Closing or if the Seller is staying in the property after Closing then Possession Date.

    IMPORTANT NOTE: The day of Closing belongs to the Buyer so utilities should start on Closing.

    Contract Deadline: Possession DateUltimate Nomad ChecklistWeek 13

  7. Change utilities into your name
    About a week prior to Closing or if the Seller is staying in the property after Closing then Possession Date you should call each utility provider and have the utilities switched into your name.

    IMPORTANT NOTE: The day of Closing belongs to the Buyer so utilities should start on Closing.

    Contract Deadline: Possession DateUltimate Nomad ChecklistWeek 13

  8. REAL ESTATE BROKER: Get keys to common area resources
    If your property has common area resources like a clubhouse where residents get a key, your Real Estate Broker will coordinate with the Seller, Seller's Real Estate Broker and HOA to get you a key to these common area resources when you get possession of the property.

    Contract Deadline: Possession DateUltimate Nomad ChecklistWeek 13

  9. Take possession of the property

Possession Time

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The Possession Time is the time deadline for seller to give possession of the property to buyer.

  1. Complete "Possession Time" checklist
  2. Take possession of the property

The next step in the Buying Process Overview is Closing.

IMPORTANT NOTE: This checklist is based on what I personally use with clients in Northern Colorado and is based on the Colorado Real Estate Commission approved Contract to Buy and Sell Real Estate. Please rely on your local real estate agent for how it works in your local real estate market. This process will definitely vary in different States.

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