FL Real Estate Transactions: When do I get paid/keys to the house?

FL Real estate transactions - Keys, Money

Throughout the course of a real estate transaction in Florida, our buyer clients are understandably keen to know when they can get the keys to their new homes. And our sellers are, of course, eager to know when the proceeds from their sale will be available to them. As alluded to in another post about real estate closings, the physical closing (the execution of the required documents) is one thing. Our ability to release funds and keys is often another. Let’s look at how this can transpire.

Cash Transactions

Cash transactions are typically pretty predictable. By the time of the physical closing, we should have received the buyer’s cash to close via wire transfer (Why Wire Transfer? - another post). In these ideal cases, we can release keys to the buyer and funds to the seller as soon as both sides have executed their closing documents.

The crux of a seamless exchange is having the buyer’s cash to close on time. Unless there are extenuating circumstances or last minute changes, our cash buyer clients should receive a final HUD-1 settlement statement days in advance of the closing date with instructions for the delivery of their cash to close via wire transfer to our escrow account. We ask that the funds be in our account no later than the morning of the closing date. Ideally, buyers will be able to initiate their wire the day prior to closing.

Financed Transactions

The timing of the funding of financed transactions is less predictable. Here are a couple of reasons why.

Closing Instructions

The first step in preparing for a financed closing is our receipt of the lender’s closing instructions. We use the instructions to prepare the final HUD-1 for closing. Ideally, we receive these instructions well in advance of the scheduled closing date; however, it doesn’t always happen that way. In fact, we often don’t get lender’s instructions until the day of closing.

HUD-1 Approval.

With the lender’s closing instructions, we produce a preliminary HUD-1 for the lender’s review and approval. Once we send it to the lender, we have to wait for their response. Their approval allows us to disclose to the buyer the cash they are required to bring to the table. Obviously, if this doesn’t happen until the day of closing, it may cause a timing issue with the buyer’s ability to send us their wire.

Loan Package

Ordinarily, lenders will only send the loan package after they have approved the HUD-1. We obviously need the loan package for the buyer to sign; so if we don’t get this by the time we had scheduled it will cause some delay.

Funding Authorization

Many lenders require what is called “funding authorization” for us to receive and/or release their funds. Typically, we must send certain signed documents to the lender for their review. Most of the time the review is performed quickly; but it can take a little time. And since we are not allowed to release the lender’s funds until authorized, this can obviously create a delay in the buyer’s taking possession and our release of funds to the seller.

Ultimately, the best thing we can do is to help our clients set the right expectations. We help set those properly based on experience with certain lenders. And we do everything within our control to help prepare our clients for the day of closing.

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Serving Fort Myers, Cape Coral and Naples, Florida.

Winged Foot Tite, LLC is not associated with the government, and our [short sale orchestration] service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.