When is the transaction closed? And why you can't have the keys.

In Georgia we are an attorney state and most of the time buyers and sellers sit down across a table with said attorney at the head and us agents crammed in the corner and documents are signed and loans are funded and the keys are slid across the table. Of course, there are exceptions.

Foreclosures are an exception for example.  Sellers aren't at the closing table and require 48 or 72 hours to review documents before signing most of the time.  Today we had one of those closings.  I cannot be sure when the attorney sent the documents to the seller, but I can tell you that the buyer's agent was none too happy when we didn't give the buyers the keys.

But the fact is if the loan hasn't funded for ANY reason you're NOT getting the keys from us.  If the funds are ready to mailed/wired to our seller you can have the keys. And while I am very sorry if it that seems inconvenient to you, but that's what happens when you pick an attorney that isn't savvy in dealing with asset management companies and a seller's attorney. It's not typical in our state for the seller to have their own attorney, but REO properties do things with a very similar process across state lines.  That means it's a bit of an overkill here in Georgia where sellers are not required to have an attorney.

I would never advise a client to pass over the keys before funding.  Don't get upset if your client doesn't get the keys from me before my clients gets the funds from the closing attorney.

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Comment balloon 17 commentsTammy Lankford, • April 11 2016 08:40PM

Comments

Tammy

It's fascinating how differently closings are handled from state to state. No keys here until the loan has funded, escrow has received and released docs for recording, and recording happens.

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude - Carlsbad (Solutions Real Estate ) about 2 years ago

Tough spot handing over the keys at closings. Nothing happens until paperwork is complete. 

Posted by Peter Mohylsky, Your Bucket List Broker along 30a (BETTER HOMES AND GARDENS REAL ESTATE) about 2 years ago

Makes perfect sense to me but the explanation to a Buyer may not sit quite so easily. Luckily the "hold" does not happen too frequently here Tammy.

Posted by Kevin J. May, Serving the Treasure & Paradise Coasts of Florida (Florida Supreme Realty) about 2 years ago

I found out that foreclosures didn't provide keys at closing a short while before a closing last year. Apparently, the foreclosure bank wouldn't approve the release of keys until the money that had been wired had shown up in their account and that did not happen immediately.

Now I know and will be able to tell buyers ahead of time that the key may not come immediately. That's such a difficult thing though. The buyer owns it, but they can't access it. Argh.

Posted by Kat Palmiotti, The House Kat (Grand Lux Realty, 914-419-0270, kat@thehousekat.com) about 2 years ago

This is good information for home buyers and sellers in your area. 

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) about 2 years ago

Jeff Dowler CRS I remember that my inlaws had to wait about 5 days after they paid cash for their home to get the keys.  I was really surprised about that.  Funding is key here, not recording.  And I've found being at ActiveRain and finding out how it works in different states  helpful in knowing what must be part of the conversation with out of state buyers.

Peter Mohylsky it is what is typical, but not in the case yesterday. I've heard from the attorney and they can have them now.

 

 

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) about 2 years ago

Kevin J. May very rare here as well. 

Kat Palmiotti typically here we only have to show them the wire has left, not wait for receipt. 

Gita Bantwal thanks.

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) about 2 years ago

Good morning Tammy. I get this and understand. Always hire the best and if you don't....be prepared to suffer the consequences.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) about 2 years ago

Hi Tammy -- as Jeff Dowler CRS commented and you acknowledged in your response back to him, ActiveRain has made me more aware of how different real estate is practiced in each market.    We represent buyers and sellers but how we get to the closing can be a world of difference.  

Posted by Michael Jacobs, Los Angeles Pasadena Area Real Estate 818.516.4393 (Coldwell Banker Residential Brokerage) about 2 years ago

It is funny how things are done differently in each state.  Attorneys are rarely involved in our transactions which I for one and very thankful for.  We are a wet state and fund at the table with all parties typically present.  Keys are handed over as long as the funds are in.

Posted by Belinda Spillman, Colorado Living! (Aspen Lane Real Estate Colorful Colorado) about 2 years ago

Too much liability involved to hand over keys before the deed has recorded in their names.

Posted by Brian England, MBA, GRI, REALTOR® Real Estate in East Valley AZ (Arizona Focus Realty) about 2 years ago

Hello Tammy ...

Interesting post and I had some clients years ago that purchased a home. Cash sale and funds were transferred right away and my clients (relatives) did not get their keys for 3 days.

They were so angry and so was I 

Posted by Robert Vegas Bob Swetz, Las Vegas Henderson Homes for Sale (Realty ONE Group) about 2 years ago

Sheila Anderson I sure wish the other agent in the transaction "got it"

Michael Jacobs it's let me know how much more in depth I need to explain things to buyers from other states who have never owned property in Georgia.

Belinda Spillman we don't have title companies.  Attorneys serve that role in Georgia.

Brian England we don't have to record, just fund.

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) about 2 years ago

Robert Vegas Bob Swetz in a market where that was uncommon, because in many markets it is.

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) about 2 years ago

Hello Tammy Lankford 

Here in Texas, closings are held at title companies but the same holds true for keys...they are not released until funding occurs! 

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) about 2 years ago

You have to lay down the law some times just to be taken seriously. This is just an example of that.

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) about 2 years ago

I grew with you all that you need to get paid and there's nothing wrong with putting your foot down when necessary.

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) about 2 years ago

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