Mortgages & Home Loans Homeowner Guide Understanding the Possession Date for Homebuyers When can a buyer move in? By Elizabeth Weintraub Updated on November 9, 2021 Reviewed by JeFreda R. Brown Reviewed by JeFreda R. Brown JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of Xaris Financial Enterprises and a course facilitator for Cornell University. learn about our financial review board In This Article View All In This Article Buyer Possession Date at Closing Customary Buyer Possession Dates Market Conditions and Possession Dates Early Buyer Possession Seller Rent-Backs Retain Possession Possession Delays The Bottom Line Frequently Asked Questions (FAQs) Photo: Gary Burchell/Taxi/Getty Images When a homebuyer picks a house to purchase, the transaction process can be lengthy and somewhat complicated. The buyer possession date, in particular, is often a point of confusion. Some of this has to do with when the seller is vacating, but not always. It's frequently one of the biggest headaches in many real estate transactions, often rearing its head midway through the process when needs or circumstances might change. Sometimes, the date of buyer possession is never clearly established in the first place. In that case, the buyer and seller may develop contradictory expectations of when possession will change hands. Key Takeaways The possession date is typically included in the terms of a purchase contract, and confusion can result when it isn’t.A homebuyer’s possession date might not come until the deed has been recorded, which could be weeks after closing.Homebuyers customarily give sellers a day or two after closing to relocate in some parts of the country. Possession typically changes hands upon closing, but market conditions can influence this a bit. Buyer Possession Date at Closing Bear in mind that a real estate closing doesn't always coincide with the recording of the deed, because in some parts of the country, counties are weeks behind in recording deeds. In those situations, closing happens when the money changes hands, the deed is drawn, and all conditions of the contract have been met. In some cities, buyers don't get the keys until the title company has confirmed that the deed has been recorded. Customary Buyer Possession Dates Local custom will dictate how the buyer asks for possession, but possession is typically an issue agreed upon at purchase contract acceptance. It's not unusual for a buyer to receive keys on the day the transaction closes. In some parts of the country, buyers give the sellers a day or two after closing to move. Sometimes sellers rent back from buyers. Note If you agree to any delays in possession after closing, be sure the terms for any rent, utility payments, and other concerns are clearly spelled out in writing. Maintenance and insurance-related issues are of particular concern, and you should review these details with your lawyer. How Market Conditions Can Influence Buyer Possession Dates Market forces can affect the way the parties handle possession dates as well. For instance: In seller's markets, buyers will often give sellers several days to move. This is to gain an edge in the event the seller receives multiple offers. In buyer's markets, buyers will generally insist upon occupancy at closing and have been known to refuse to close if the property isn't going to be vacant at closing. In neutral markets, possession typically changes hands upon closing. Early Buyer Possession As a general rule, real estate experts frown upon giving buyers early possession, because too many things can go wrong at the last minute. Eviction is neither easy nor inexpensive. For that reason, professionals advise that sellers and buyers execute some type of rental agreement rather than transferring possession before the sale is complete. Note Instead of specifying possession on a certain date, it's smarter to write contracts that give possession either on a certain day or X days after closing. Seller Rent-Backs Retain Possession Buyers want sellers to pay a sum equal to their mortgage payment, plus insurance and taxes. That amount is often a lot more than the seller's original mortgage payment, though, and they may not be willing to pay it. Whatever amount is agreed upon, put it in writing, and execute a rental agreement to protect all parties. The amount is negotiable, and there is no real reason it needs to be based on the buyer's principal, interest, taxes, and insurance (PITI). An argument can be made that the rental amount should be based on average rental amounts for the area. Note Be sure not to agree to a rent-back lease agreement of longer than 60 days. If you do, your lender may consider the home an investment property and raise your interest rate. Possession Delays Due to Loan Funding Conditions Even the best-laid plans run afoul at times. Your contract can spell out precisely when occupancy is permitted, yet the transaction might not close on time. By the time the loan documents are signed and the lender reviews them, the underwriter might call for a loan condition to be satisfied before funding, and that can easily delay closing. Consider an example. A seller from Carmichael, California, found she could not find any movers to work on a holiday, the day she was supposed to vacate her home of 40 years. The buyers refused to give the seller an extra day to move out, claiming the seller should have made arrangements far in advance of her move-out day. Reluctantly, and at an additional expense, the seller changed her moving day to meet the buyers' demands. At the last minute, though, the lender called for a loan condition and refused to fund the loan until the condition was met, which delayed the closing by two days, but the buyers still wanted the keys to the home on the day it was originally scheduled to close. They didn't want to physically move in; they simply wanted to shampoo the carpet. If you were the seller who had moved out and left the home vacant, would you have given the keys to those buyers? The seller, when informed that keys should not be handed to a buyer until a transaction closes, decided to withhold the keys and delay buyer possession. She was within her rights and knew the risks involved. The Bottom Line It's crucial all parties in a real estate transaction clearly communicate about the possession date before they finalize their sales contract. Your agent (and lawyer, if needed) can help you navigate any local laws that could impact this arrangement so you can be informed when you negotiate the details. Buying and selling a home is complicated enough. Don't let possession issues cause one last headache before you close the deal. Frequently Asked Questions (FAQs) How long does it take to close on a house? Closing on a house typically takes 30-45 days, but it depends on several factors. The type of mortgage you have affects how long closing takes, as some types of loans, such as FHA loans, have more requirements. Paying cash for a home can speed up the process. Appraisals also take time, especially if it comes in too low. Who pays for closing costs on a home? The purchase contract determines who pays closing costs. In general, buyers pay most of the closing costs. These include mortgage costs, the appraisal, the home inspection, and insurance. Sellers pay real estate commissions, which can be substantial. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Consumer Reports. "What To Know About Rent-Back Agreements if You're Buying a Home."