How to have a smooth closing day
Sam Schneiderman, Broker-owner of Greater Boston Home Team continues his Monday series.
Most purchase and sale agreements have a clause that stipulates that the property will be delivered vacant and “broom clean” at the time of closing. Well drafted purchase and sale agreements also entitle buyers to walk through the property prior to closing. Therefore, it seems logical to assume that when someone signs a purchase and sale agreement with that language, the sellers understand that they need to be out by the closing time and the buyers understand they can’t move into the property before the closing, unless other arrangements are made in advance.
Any active real estate agent or attorney will tell you that things don’t always go the way that they are supposed to, especially on closing day. Sometimes, moving trucks show up late or it takes longer than planned to move out. To complicate things further, lately I’ve seen more and more buyers that can take only a few hours off from work to close and have little flexibility in their schedule. Often, they don’t announce their plans until the last minute and sellers can not always be out in time for the closing.
For buyers and/or sellers that need to sell one property before buying another, things can get even trickier if their sale gets delayed for any reason. While most often things can get worked out amicably in a few hours, stress levels can soar. Expenses for overnight furniture storage, mortgage interest, property insurance, hotels, document re-draft and legal fees can also add up if the closing doesn’t happen on the scheduled day.
To insure the smoothest closing, sellers should arrange to be packed in advance of closing day. I suggest that sellers move out and sweep up as early in the day as possible, then close in the afternoon.
If they are also buying a property, we try to schedule their purchase walk through and closing for the following morning. (Many movers will store the furniture in their truck overnight at no additional charge, but you need to ask for the free storage and sometimes shop around to get it.) Clients can usually stay overnight with family, friends or at a hotel.
Buyers should ask their attorneys to provide a settlement statement and final dollar amounts a day or two before the closing. The final walk through should be just before the closing to insure that the seller has left the property as promised and to insure that there has been no vandalism or damage overnight (like a burst pipe or fire).
Both buyers and sellers should understand that they may need to remain flexible on closing day in case of delays caused by other parties and schedule their closing(s) so that they can take the day off.
