Completion Date, Possession Date, and Adjustment Date are all terms used in the real estate industry. They may seem similar, but there are some differences between them.
The completion date is the date which the property is legally transferred to the buyer. The possession date is the date which the buyer can move in and take possession of the property. The adjustment date is the date that any final adjustments to the purchase price are made.
All three dates are important to note when buying or selling a home, and it is important to consult with your real estate agent to make sure you understand them.
The Completion Date
The completion date is the day when the ownership interest and purchase price funds for the property are exchanged. The buyer typically becomes responsible for the property after 12:00 a.m. on the completion date. However, the buyer does not necessarily move in on the completion date.
We generally advise that the completion date falls on a weekday (preferably Monday to Thursday) to prevent delays with the completion of the transfer.
The Possession Date
When the buyer takes possession of the property, that is the “possession date”. The keys are typically provided to the buyer on the possession date.
The possession date is typically the next day or a few days following the completion date, but this can vary depending on the situation.
The Adjustment Date
The adjustment date is an important day in the conveyancing process. The calculation of taxes, maintenance fees, utilities, and other amounts payable by the buyer or seller are adjusted based on this day. According to the lawyer or notary’s statement of adjustments, these ‘adjustments’ are pro-rated based on each party’s share of costs.
The purpose of the adjustment date is to make sure that both buyer(s) and seller(s) are properly compensated for their share of the expenses. For example, if the seller has pre-paid a portion of the property taxes for the home, the buyer will compensate the seller for the property taxes paid to date based on the adjustment date.
Tips for a Successful Property Hand Over
Here are a few tips for a successful closing and possession in a real estate transaction:
- Schedule the completion and possession dates at a time that is convenient for all parties involved.
- Retain a lawyer or notary in advance to prepare the paperwork associated with the transaction. (Generally this is done once subjects have been removed on an accepted offer).
- Prior to closing, ensure all finances are in order.
- Prior to closing, ensure all necessary inspections have been completed.
- Make sure all keys and other access items are gathered and provided to the new owners at the time of closing.
- Have a moving company scheduled and ready to move belongings out or into the property when required.
- Arrange for utility accounts to be transferred on the possession date.
- Complete a walkthrough of the property on or before the possession date as applicable to verify that everything is in order and as expected.
How Can Solimano Law Help?
Solimano Law can help to ensure that the entire conveyance process goes smoothly as well as answer any questions you may have about the completion, possession, and adjustment dates. Our team can provide guidance on important deadlines, what documents need to be signed, and can represent both buyers and sellers in real estate transactions. Give us a call today!
Disclaimer – The information contained herein is of a general nature. It is not intended to be legal advice and it is not intended to address the exact circumstances of any particular individual or entity. No one should rely on or act upon such information without receiving appropriate professional advice and without a thorough examination of their particular situation. Please contact our office if you have any questions with respect to the content of this entry, this website, or our Terms and Conditions .