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Old 10-09-2008, 12:33 PM
 
Location: Greenville County, SC
275 posts, read 1,579,799 times
Reputation: 194

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My parents sold their house in California and the sale closes tomorrow, 10/10.

Their buyers signed all the documents last Monday, and my parents signed over a week ago.

They have been told by their realtor that the wire transfer of funds into their bank accounts from the sale may not occur until Tuesday, 10/14 (Monday is Columbus Day), but they should still turn over the keys to the buyers on Friday the 10th. They were told the funds transfer may be delayed if the title company cannot record the sale with the city early enough on Friday. They have also been told all the funds have been released by the buyer's lender.

Would appreciate comments and opinions from real estate agents if this sounds normal (i.e. turning over the house to the buyers before they have the proceeds from the sale). It is a sizable amount of money, since my parents paid off their mortgage many years ago.

Thanks!
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Old 10-09-2008, 12:45 PM
 
Location: Spring, Texas
409 posts, read 1,519,785 times
Reputation: 161
Quote:
Originally Posted by Mjames View Post
My parents sold their house in California and the sale closes tomorrow, 10/10.

Their buyers signed all the documents last Monday, and my parents signed over a week ago.

They have been told by their realtor that the wire transfer of funds into their bank accounts from the sale may not occur until Tuesday, 10/14 (Monday is Columbus Day), but they should still turn over the keys to the buyers on Friday the 10th. They were told the funds transfer may be delayed if the title company cannot record the sale with the city early enough on Friday. They have also been told all the funds have been released by the buyer's lender.

Would appreciate comments and opinions from real estate agents if this sounds normal (i.e. turning over the house to the buyers before they have the proceeds from the sale). It is a sizable amount of money, since my parents paid off their mortgage many years ago.

Thanks!
Mjames...what does their contract state? Our TREC Contacts addresses when possession can/or will occur... does theirs?...Sunny
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Old 10-09-2008, 12:53 PM
 
1,950 posts, read 5,305,114 times
Reputation: 1275
Where I come from, this is perfectly normal.
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Old 10-09-2008, 02:01 PM
 
Location: Melbourne, FL
1,006 posts, read 5,070,997 times
Reputation: 633
Yes, this can happen. If there are wire transfers out of state and back to back closings on the same day, I try to avoid doing business on a Friday afternoon as wire transfers can sometimes get held up at the Fed Reserve bank.

P.S. However, I do not allow buyers to move in until money is transferred and title recorded. The sellers will receive the proceeds after all is said and done.
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Old 10-09-2008, 02:46 PM
 
Location: San Antonio
4,149 posts, read 9,308,211 times
Reputation: 3308
I never give buyers a key until the loan has FUNDED (money transferred and in seller's bank). With this current market, it's not been uncommon for loans to close, but not fund because a bank went under.

In Texas (I'm sure you can do this everywhere) we can do a leaseback where the buyers would essentially lease the house from your parents for a daily fee, which is usually their mortgage broken down to a day-to-day payment for the amount of days. This will give your parents the protection of a contract.

Unless I had a leaseback of some sort, they wouldn't get any keys from me.
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Old 10-09-2008, 03:25 PM
 
Location: Virginia Beach, VA
2,124 posts, read 7,937,449 times
Reputation: 813
it is normal where we are as well.....

but what does your parents attorney say?

shelly
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Old 10-09-2008, 03:30 PM
 
Location: New Mexico
472 posts, read 1,003,569 times
Reputation: 516
In San Diego, where I am a realtor, Keys should not be given to the buyers until the their loan has funded and the title transfer 'Recorded' with the county. Once recorded the buyers legally own the property. The proceeds for the sale are more than likely in the escrow account and usually escrow is able to cut a check to the sellers within a day or so. Just as long as the proceeds are in an escrow account you should be fine.
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Old 10-10-2008, 01:49 AM
 
Location: Greenville County, SC
275 posts, read 1,579,799 times
Reputation: 194
Thumbs up Thanks!

Thanks!

I appreciate all the responses.

I'm about 6,000 miles away from my parents right now in another country and did not have the opportunity to review their contract. I did talk to their agent though, and was left with a good impression. Also, there is no attorney involved, which is normal for a California residential real estate transaction.

From further discussions with my parents last night, I think what trailtramp described is what has happened and the funds are in an escrow account.

Thanks again!!
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Old 10-10-2008, 10:58 AM
 
1,151 posts, read 2,669,186 times
Reputation: 248
You should advise the title company that they are not authorized to record (or release - very important) any documents until the funds have been wired to your parents account. Unless the title company is totally incompetent, there is no reason the wire can't get to your parents account same day -- especially if all of the documents have been signed long ago.

It's a pretty simple concept - the buyer doesn't get what they want (the deed and the keys) until the seller gets what they want (the money). Getting what you want means receiving your money.
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