Possession Day is an exciting occasion in home buying, marking the official property transfer from the seller to the buyer. For both parties, understanding what to expect on this day and the roles of realtors and lawyers can ensure a smooth transition and alleviate any potential stress. I’ve provided a detailed overview of what home buyers and sellers can anticipate on possession day in Calgary.
For Home Buyers
1. Final Walk-Through:
Buyers conduct a final walk-through of the property before taking possession. This lets them confirm the home is in the condition agreed upon in the purchase agreement and that the required repairs have been completed.
Realtor’s Role:
The buyer's realtor serves as a guide during this final inspection. They help buyers identify any issues that may have arisen since the last visit and ensure that the home meets the agreed standards.
Lawyer’s Role:
The buyer’s lawyer prepares the final documentation and ensures that all conditions of the sale are met. They may also advise the buyer on what to look for during the walk-through.
2. Collecting Keys and Possession:
Once the walk-through is complete and everything is satisfactory, the buyer officially takes possession, usually around noon on the possession date.
Realtor’s Role:
The buyer's realtor coordinates the logistics of key collection, ensuring the buyer receives the keys promptly. They facilitate communication between the two parties, ensuring everyone is aware of the plan for the day.
Lawyer’s Role:
The buyer's lawyer collaborates with the seller’s lawyer to facilitate the exchange of keys and officially transfer ownership. They ensure that the financial transactions related to the sale are processed correctly.
For Home Sellers
1. Preparing for Possession:
Sellers are responsible for ensuring the property is left in the condition specified in the purchase agreement. This includes cleaning the home and removing personal belongings by the final walk-through.
Realtor’s Role:
The seller’s realtor will communicate with the buyer's realtor to confirm everything is on track for possession day. They also help resolve any issues or negotiations before the transfer.
Lawyer’s Role:
The seller’s lawyer prepares all necessary documents for the transfer of ownership, including the statement of adjustments, which outlines any remaining financial obligations.
2. Financial Settlements:
On possession day, the seller receives the proceeds from the sale, usually handled through their lawyer.
Realtor’s Role:
The seller’s realtor will help the seller understand what to expect regarding the final financial settlement and ensure all necessary steps are taken on possession day.
Lawyer’s Role:
The seller’s lawyer is responsible for executing the financial transactions, ensuring all funds are transferred correctly, and addressing outstanding obligations.
Mutual Responsibilities
1. Effective Communication:
Open communication between realtors and lawyers for buyers and sellers ensures timelines are followed, roles are fulfilled, and last-minute issues are quickly addressed.
2. Handling Contingencies:
Realtors and lawyers must monitor and manage any contingencies outlined in the purchase agreement, facilitating communication with inspectors or contractors to validate that all conditions are satisfied.
3. Celebration of a Successful Transaction:
Once the keys are exchanged and possession is taken, home buyers can officially begin their journey in their new property. At the same time, sellers can celebrate the successful closure of one chapter and the opening of another.
As you can see, possession day is an exciting milestone for home buyers and sellers. With adequate preparation and communication, it can be an enjoyable experience that marks the beginning of new opportunities for everyone involved. Embrace the journey and welcome the transitions that come with homeownership!
