13 Aug Possession Day- when will you receive your money?
The timing of when you receive your money after a real estate sale closes can vary based on several factors, including the terms of the sale, the processes of the involved parties, and any potential delays.
Here’s a general outline of what you can expect:
1. Closing Date: The closing date (also known as the possession date) is the day when all the necessary paperwork is signed, funds are transferred, and ownership of the property is officially transferred to the buyer. This is the earliest you can expect to receive your money.
2. Distribution of Funds: The funds from the sale are typically distributed among various parties. First, any outstanding mortgage balance is paid off. If the mortgage company hasn’t sent the lawyer a final payout statement, there will be delays! Then, other fees and expenses related to the sale are deducted, such as real estate agent commissions, legal costs, and any other agreed-upon expenses. The remaining amount is the net proceeds from the sale, and this is the amount that you will receive.
3. Method of Payment: The method of payment can also impact the timing. Most commonly, the funds are deposited directly into your bank account. This deposit is not instantaneous even if done electronically and it may in fact take one or two business days. Some transactions might involve a physical check, which you may need to pick up from your lawyer. Regardless of the source of funds and method of payment, your bank may still put a hold on the funds.
4. Possible Delays: While most real estate transactions go smoothly, there can be unexpected delays. These delays might be related to issues with the buyer’s financing, unexpected hold-backs due to non-compliant RPRs, or other unforeseen circumstances. It’s a good idea to work closely with your real estate agent and the professionals handling the transaction to ensure a smooth process.
5. Local Practices:The timing of fund disbursement can also vary depending on local practices and regulations. Different regions might have different customary practices when it comes to disbursing funds after a real estate sale.
To get a more accurate estimate of when you’ll receive your money after your real estate sale closes, it’s best to consult with the professionals involved in your transaction, especially your lawyer. They will be able to provide you with specific information based on the details of your sale.