When Do I Get the Keys After Closing?

It’s an exciting time when purchasing a new home, and naturally, one of the most anticipated moments is receiving the keys. While closing day signifies the official legal transfer of ownership, the actual handover of keys can vary significantly. Understanding the factors that determine when you gain physical access to your new property is important for a smooth transition.

Key Exchange at Closing

Many homebuyers anticipate receiving keys immediately after signing the final documents. This immediate transfer typically occurs when all financial transactions are complete, including the disbursement of funds from the buyer’s lender to the seller, and the deed is recorded. At this point, the property legally becomes the buyer’s, granting physical access.

The key handover usually takes place at the closing table, facilitated by the seller’s agent, the title company representative, or the closing attorney. Buyers should confirm they receive all necessary keys, including those for all entry points, mailboxes, and any garage door openers or security system codes. This immediate exchange occurs when there are no outstanding conditions or agreements for delayed possession.

Key Exchange After Closing

There are several common situations where keys are not handed over immediately at the closing table. One frequent reason is a seller occupancy or rent-back agreement, where the seller remains in the property for an agreed-upon duration after the sale closes. Such arrangements are formalized within the purchase agreement. The keys are then transferred at the conclusion of this specified period.

Funding delays can also postpone key receipt. Lenders may not disburse funds until the next business day, and keys are withheld until all funds are officially transferred to the seller. Similarly, recording delays can impact key transfer. In some jurisdictions, keys are not released until the deed is officially recorded with the county. Additionally, the purchase contract may contain specific clauses dictating a delayed key exchange.

Understanding Possession and Occupancy

Closing marks the legal transfer of property ownership and the completion of the financial transaction. However, the legal right to control and occupy the property, known as “possession,” does not always transfer simultaneously with ownership. “Occupancy” refers to the physical act of living in or using the property.

The purchase agreement is the document outlining the date and time of possession, which directly dictates when the keys are transferred. For instance, if a rent-back agreement is in place, ownership transfers at closing, but the seller retains the right to occupancy for a set period, delaying the buyer’s possession and key handover. Buyers should carefully review the possession clause in their purchase agreement with their real estate agent or attorney to understand when they can expect to receive their keys.