If you are in the process of buying or selling a property, you may have come across the terms “completion date”, “possession date”, and “adjustment date”. Although these terms may seem interchangeable, they actually have distinct meanings that can affect your real estate transaction. In this blog post, I will explain the differences between these dates and provide some tips for a successful property handover.

The Completion Date

The completion date is the date on which the property ownership and purchase price funds are exchanged between the buyer and seller. It is the date on which the property legally transfers to the buyer, and the buyer becomes responsible for the property from that point forward. However, the buyer may not necessarily move into the property on the completion date.

To prevent delays, it is generally advised that the completion date falls on a weekday, preferably from Monday to Thursday. This ensures that any issues that arise during the transfer process can be resolved before the weekend.

The Possession Date

The possession date is the date on which the buyer can take possession of the property and move in. This date is typically the next day or a few days following the completion date, but it can vary depending on the circumstances.

On the possession date, the seller typically hands over the keys to the buyer. This is an important date for the buyer because it marks the start of their occupancy and responsibility for the property.

The Adjustment Date

The adjustment date is an important date in the conveyancing process. It is the date on which final adjustments are made to the purchase price based on taxes, maintenance fees, utilities, and other costs associated with the property.

The purpose of the adjustment date is to ensure that both the buyer and the seller are properly compensated for their share of expenses. For example, if the seller has pre-paid property taxes, the buyer will compensate the seller for the taxes paid up until the adjustment date.

Tips for a Successful Property Handover

Here are some tips to help ensure a successful closing and possession in a real estate transaction:

1. Schedule completion and possession dates at a time that is convenient for all parties involved.
2. Hire a lawyer or notary in advance to prepare the necessary paperwork associated with the transaction.
3. Ensure all finances are in order prior to closing.
4. Complete all necessary inspections before closing.
5. Ensure all keys and other access items are provided to the new owners at the time of closing.
6. Schedule a moving company in advance to move belongings out or into the property as required.
7. Arrange for utility accounts to be transferred on the possession date.
8. Complete a walkthrough of the property on or before the possession date to verify that everything is in order and as expected.

Don’t navigate the complex world of home buying alone! Make sure you’re protected and informed throughout the process. I can guide you through the legal aspects of purchasing a home. You can contact me for a consultation using the form below.