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The final step of the home buying process, real estate closing is still a bit of a mystery for first-time home buyers.
Q: What is House Closing?
A: In real estate, closing is also referred to as a settlement. While the two terms can be used interchangeably, “closing” is the more commonly used. In a nutshell, this is the final step in a real estate purchase transaction when property ownership is transferred from the seller to the buyer.
Q: Can you move to your house before closing?
A: Yes, you can move into “your” house before closing. This depends though on the type of closing that is being referred to. If it is before the closing of a sale, generally no. There is nothing to legally bind the contracting parties. Technically, it is not your house. It will be to the disadvantage of the seller to allow the prospective buyer to move into the property without so much as a signed Contract to Sell. It will not be considered your house until the transaction has actually closed.
A real transaction is deemed actually closed once the title has been legally transferred under the buyer’s name. There are however many occasions where the seller has allowed the buyer to move into the property prior to this. An example is after the Deed of Absolute Sale has been signed while the title transfer is pending.
Q: How long does it take from offer to closing on a house?
There is no set time frame that would provide an estimate on how long it would take from offer to closing on a house. The variables in play make it too unpredictable to give a set answer. An offer could be declined which could lead to a counter-offer (or none) by the seller. This could prompt the prospective buyer to negotiate another offer until the parties come to an agreement. On the other hand, if the offer is to be accepted, there is the matter of documentation and getting the necessary signatures to close the sale.
Closing on a house on the basis of title transfer is another story. This would depend not only on the readiness of the contracting parties themselves but the government agencies concerned as well. There is also the question of payment. Acquiring a loan to pay for the house will necessarily prolong the process. Ideally, it could take between two to three months. There have been cases however when closing on a house could take up to a year.
Sources: Investopedia, Zillow
Read our previous Q&A for more info on homeownership.
