When you can move into your new home will depend on both your contract terms and the closing process where you are buying. I am currently working with relocation clients who were surprised to learn that in Minnesota most buyers get the keys to their new home at the closing table and can move in immediately after closing.
Ask your Realtor about the closing process where you are buying… it could be different from what you have experienced before. If you are relocating, you may have to coordinate two different closing processes with different timing.
Regardless of the closing process, your contract could have different terms, such as the sampling below…
- In Minnesota, most buyers take possession immediately after closing – this means you get your keys at closing and can meet your movers at your new house immediately after closing, which usually takes about an hour
- Possession could be a day or more after closing per your purchase agreement – this usually happens because the seller needs to get the proceeds from the sale of their current home before closing on their new home… making it difficult to move out and clean before they have a place to go
- Sellers could ‘rent back’ their home for a limited time – this can happen for a variety of reasons, such as the sellers not being able to move into their new home until later but needing the proceeds from the sale of their current home first… if buyers are flexible on closing date and agreeable to this situation it can give them an edge in a competitive market… in this situation a Rent Back Agreement is part of the purchase agreement, with the sellers essentially renting from the buyers
- Buyers could ‘move in’ early – this can also happen for a variety of reasons… as an example, I have buyers doing this right now…
- Buyers need to get the proceeds from the sale of their current home before they can make a cash purchase of a new home, but were afraid they wouldn’t be able to find a place to buy after they sell and would be homeless
- Buyers found a condo they liked that was vacant
- Sellers agreed to accept their offer contingent upon the sale of their current home, including a Move-In Agreement so they could move in before selling their current house… they even came to an agreement for the seller to make some updates for them, and the buyer to make some additional updates during this period
- The actual closing on their new home will take place after the closing on their current home… which they are busily preparing to list for sale
Bottom line is, in Minnesota most buyers get the keys to their new home at closing and have immediate possession. However, circumstances can dictate different scenarios. Sometimes creative solutions work out well for all parties involved… the key is communication and building trust.
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
