What is the difference between the completion date, the possession date, and adjustment date?
Completion Date, Possession Date, and Adjustment Date are all terms used when buying real estate.
They may seem similar, but there are some important differences between them.
These are terms that may seem similar but have differences that make each an important factor when buying or selling a home, which is why it is important to understand each one.
Completion Date
The completion date is the day when the ownership interest and purchase price funds for the property are exchanged. The buyer of the property usually becomes responsible after 12:00 a.m. on the completion date. This does not necessarily mean that the buyer will move into the property on the completion date. It is usually advised that a weekday date (Monday to Thursday) is used as the completion date to prevent any unnecessary delays with the completion of the transfer.
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 when the buyer of the property officially takes possession of that property. This is where the keys are provided to the buyer. This date usually is the next day or the following few days of the completion date, however, this can vary depending on the specific circumstances.
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. The adjustment date is important to make sure that both the buyer and seller are compensated adequately within each of their shares of the expenses. An example of this is where the seller of a property has pre-paid a portion of the property taxes of the home, they will be compensated by the buyer for the property taxes which are paid to date based on the adjustment date.
How Paperclip Can Help
Paperclip 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 are needed to be signed and when. Please call our office or email realestate@papercliplaw.com!
