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In almost every contract I’ve work in the last twenty years, one or both parties to the contract want the weekend to make their physical move. There are several thing to consider when determining the closing and possession dates on your contract.
If you are selling a property and buying another, the first and most important consideration is to determine when you will receive the proceeds from the sale of your present property. Most people need the proceeds from their present property to use toward the closing of their next property. If your buyers close on a Friday it is difficult and sometimes impossible to receive your proceeds until the following Monday.
The time to determine the closing logistics is at contract negotiation time. If you need to make the physical move over the weekend it is best to arrange the closing of your present property in the early part of any week. This will allow for normal closing glitches, transfer of funds and most importantly will allow you to close on your next property. If you are moving out of state or renting weekends may not be that important to you.
I find that most contracts close near or at the end of a month. If you are renting it is wise to bear in mind that you often must be out of your rental by no later than the last day of the month or pay another months rent. Many leases contain a notice provision that say you must give 30 to 60 days notice prior to moving Reading your lease thoroughly can save your deposit and help you plan you move effectively.
Most lenders will make a forty-five to sixty day loan commitment at their best rate. A closing outside of the forty-five or sixty day window make cost you additional closing costs and or a higher interest rate. The key again is planning well in advance.
When negotiating possession dates it is wise as a seller to allow yourself enough time to receive your proceeds, close on your next property and receive possession quick enough to allow the physical move out of your present property and move-in to your next property In some cases both parties want the weekend to move and the weekend is split where possession is given at 5 PM on a Saturday. In rare cases I’ve seen one party moving out the front door and the new owner moving in through the garage door. Sellers on occasion ask to "rent back" their own property to allow time to move to their next property or for completion of their new home.
Closing and possession times and dates need considerable thought. Planning ahead will save you time and money to say nothing of the prospect of having a nice weekend.
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