Most people have one goal in common- building their dream home. The American dream itself centers around it. It comes as no surprise that millions buy houses every year. According to Statista, 5.25 million houses are predicted to be sold in the US in 2019.
Have you recently bought a new house? If so, you probably can’t wait to move into it. Once the deal has been negotiated, you might be counting days till the closing day, thinking about how to decorate your house best.
However, before you begin materializing your dream, know that it is not necessary that you can move into your house the day of closing.
When can you move in?
The move-in date will depend on your contract term. The offer you negotiate with the house seller doesn’t just include the price of the house. Instead, there are various other elements discussed in the contract.In the real estate world, the buyer makes the offer, and the seller either accepts or negotiates it. Therefore, when you are writing an offer, you will be asked to include a closing date and an occupancy date. It is not the closing date, but the occupancy date that governs when you will move in.
Hence, you may or may not be able to move into your house at the closing date. Only if you have specified the two dates to be the same can you make such a demand? Note that sellers are also given a say in finalizing the two periods.
Sometimes, certain sellers may require time in the house even after closing. This can occur if they too are in the process of purchasing another home. In such a case, your occupancy date, and hence their evacuation date may be set after the closing date.
Things you need to remember
There are certain things you must remember, regarding your ability to move into your newly bought house:1. Occupancy date may require compromise from both sides
When you are planning how to decorate and set your new home, make sure you leave a buffer for the occupancy date to not be the one you suggested. Remember, the offer you make is the initial framework. It will change.As a rule of thumb, mentally prepare yourself to have an occupancy date of 10 days after the closing date. This is because it is generally observed that sellers do take seven to ten days to vacate the house.
Make sure you are flexible enough to take their convenience into account. This increases the chance of the deal being successful. However, at the same time, don’t be fooled into agreeing to the very late occupancy date.
2. You cannot change your occupancy date once it has been set
Don’t agree on a verbal occupancy date. Instead, make it a part of the contract. This way, once the contract has been signed, you will have a fixed moving date. Now, neither the buyer nor the seller of the house can change the occupancy date. Why? This is because now both parties are bound by a legal contract.3. Know that leaseback may be an option
Let’s say you find the perfect dream house. The homeowners agree to sell it to you. However, they are not ready to move out of the house near the closing date. One thing that can happen is that the deal falls through.However, if you like the house and wish to be its owners, there is another thing you can do. You can avail the option of leaseback. This allows the seller to live in their sold house for a given period after the closing.
What’s in it for you?
Well, the seller then pays the buyer monthly rent till the time of evacuation. Since you are now responsible for the finances of the house, you become the landlord of the house, and the seller becomes the tenant.You don’t need to worry about your contract terms
Whether or not you can move in at the closing date will be decided by the contract terms. Rather than handling it all on your own, it is often recommended that homeowners take help from real estate attorneys. After all, it can be difficult to understand legal jargon. And hiring an attorney help in providing the required clarity.Additionally, it is also advised that the real estate attorney you hire is within the state you live in. This will ensure the quality of service and also guarantee that the attorney is familiar with the legal intricacies of the area. So, let’s say if you live in Texas, you must look for a real estate attorney Texas has to offer.
Verdict: It all depends on the contract
Can you move into your newly bought house on the day of the closing? Maybe yes. Maybe no. It all depends on what occupancy date is specified in the contract. Get help from a real estate attorney to take care of the technicalities. You can then get a fixed moving day date.
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