Hey there, I’m Mike and Shana. We’re real estate brokers, and right now we’re going to talk about planning ahead for closing day. Yeah, super exciting day, right? But we’re going to talk about how you can make it smooth for your clients, whether there is a lease back, whether there’s not.
How do you exchange keys? What about warranties? What about all these different items that are going from one party to the other? How clean should the home be? These are all things that we’re going to talk about right now and make sure that they’re addressed.
So, you know, on Wednesdays we do. Can’t stop. Won’t stop. Wednesdays we do. So once you’re executed on a contract and you get like midway through. Think of it as can’t stop, won’t stop. You’ve got to finish it out. OK, so you have to do your whole job. You’ve got to do your whole job.
It’s not like you can go to closing in to chain, get my check. So we’re going to talk about a couple of things. So we’ve been hearing a lot of people doing leasebacks, OK? And it seems like during this leaseback, things are kind of getting a little complicated, so.
Here’s a couple of things that I that I advise you to do, OK, when you have a cellar leasing back a property, you want to make sure that you have any inspection reports that were done in the beginning. Right, during the contract period. Yes, because what is happening is during that lease back, maybe a deposit was left and it could be minimal. It could be, you know, a thousand, two thousand dollars, whatever it may be. And a seller who had to rush to get a property under contract, get it secured there.
So excited, may start having some buyer’s remorse in there, looking at that lease back amount, as you know what, I I’m going to keep that. So in order to protect your seller and, you know, there’s other reasons.
I’m just using this as an example. So to protect your seller and to protect that earnest money or that deposit lease deposit, our suggestion is get that inspection report so you have it so they can’t come back and say, oh, this is beyond normal wear and tear.
We’re going to take that money from you if you can prove that it was already in existence. That’s not a new item that has come up. Does that make sense? So you want to be careful with that, because all repairs during the lease back are the responsibility of that tenant, the previous seller, all of them. So you can see this can kind of go sideways. Mm hmm. Right.
So we want to be very cautious of that and transparent, apparently. So knowing the status of the home, it’s kind of like the Move-in condition report. It is is basically.
It is. It truly is. But, you know, this is also on the flip side, if you have someone, you have the buyer on that end, then you want to make sure that you have done a prior walkthrough before closing and you’ve compared all of the things that were supposed to be repaired and you sign off on it with them. So they fully understand that. Hey.
No walk through super important, making sure everything is done has
To be signed off on, if you’re not comfortable checking them, they can get an inspector to come back in and check them. But once we’re done at closing, those repairs are done. You can’t bring them back up in a lease back.
OK, so that’s just a little something, something for the leaf’s bag that you guys need to remember, so it’s taking the time in finishing the job. The other thing that we’re seeing are the exchange of keys. OK. OK, so how we typically do it is at closing.
If we have the buyer, then we ask the listing agent, can we just take that key from the lock box and take it to the title company, the agent, you take that key, you go to the title company. The buyer is not allowed to have that key until it funds.
Then the key can be transferred. So don’t give them that key prior to that happening because that’s a huge violation. But you don’t want to be scrambling at the last minute like, oh, how do I get my keys unfunded?
I want to go to my house. Oh, I don’t have the key, you know, and I got to coordinate with this person. Just do that in advance. The Keys should always be at the title company.
At closing and its vote, when it funds, not just I’m signing, give me my keys, and that’s a conversation to have. You know, they’re kind of two separate events. You close and then you fund. So, you know, you can’t you can’t give them the keys until that time if you have the seller.
OK, the same thing, listing agents take that key prior to closing, either the buyer’s agent gets that key out of the lock box. If they don’t, then you need to get that key and take it with you to closing and leave it there and let it be their responsibility to coordinate and get it. Otherwise, you may be receiving a phone call late at night. I need my keys.
We’re going to take our family over to the house where the keys are, the title company. It’s closed. What do I do? Well, so coordinate these things in advance and save yourself the headache later. Right. So just be careful with that in a leaseback, OK? So sometimes the key stays in the lock box because the seller is going to lease it back and the buyer thinks, well, I shouldn’t have a key, which they are entitled to a key.
If you’re purchasing a home, whether there’s a lease back or not, they’re entitled to have a key to their property. Same thing. Get that key, whether it’s a lease back or not. If they don’t pick it up, take it to closing and leave a key there.
But technically, once you’re done with that, the lease back is the responsibility of the tenant in the landlord, the previous seller and the new buyer. So but who are they going to call you? They’re going to call you to help them if they’re in a crisis and need a key. So plan these things ahead, document and Zoho and make sure that we know how this is going to work.
If you took the key to the title, put me make a note in Zoho. He was taking the title company today. Just so everyone knows, maybe put in an envelope and label it to her because they have a lot of keys there. We don’t have any miscommunications there. Yes.
So that’s all great information. And if you are ever confused on exactly how that works, then just simply go back to the Tenente session, typing keys, and then you’ll be able to find this episode here, know hear exactly what John has said about it. You can go down and scan and get down to the transcript and hear all the information. But now that’s fully explained to you.
It was a difficult topic with all of the things and how it goes. The nuances of leasebacks are not facts or keys and doors and what’s going on. But now you have that information. My one piece of advice here on closing day and planning ahead for it is to go through the settlement statement and understand it right. You get it in advance.
And I would find it appalling if I was a client and I showed up and I was an analytical personnel, was looking at the closing statement and my agent didn’t thoroughly know it and understand it. So if you don’t really know the closing statement backwards, forwards, where all the lines are, what the credit is, what the debit is, then you’re not prepared.
And then why are you going to closing?
Yeah, right. Because you’re just looking for your check. It’s going to it’s going to look and feel super bad if you’re not ready for that moment with understanding every line item on there, knowing all about it, because that’s your job to be their fiduciary and look after it now.
So this the the lender technically should go over that with your client.
Ok, for you, it was not a substitute. No, but, you know, I have you ever gone to closing in? The first thing they ask is, have you had time to. Did you review the settlement statement? Do you have any questions they just skip right over and get right to signing the documents that the title agent is not going over that any longer
Line by line. And if you’re amazing at closing, it is such an opportunity to pick up clients. It really is to get referrals galore that one moment in particular is possibly the moment where you gain or lose all of your referrals based on that. If you come in hot and you’re not ready and you’re not composed, you’re not properly dressed for success, then you will have a problem.
Right. You need to go in with all the knowledge and totally be on top of your game, like, yes, this is what it is. We went through all this. You checked all the things. Who’s paying for the service, who’s paying for this, who’s paying for that? And you know it right now.
And it’s crazy. That’s a very good job. She reviews it and kind of lets us know, hey, I looked at it, everything looks good. But that doesn’t mean you don’t have to look at it until closing time. You should be looking at it as well and making sure that you double check it. This is there. This is when it all comes to play. And if something is amiss at closing and you have to correct it, you’re not close in that day. And that could cost a buyer and seller a lot of money.
Future topics. We’re going to go over and we’ll put it in. There are probably like ten questions that you might get at closing from your client that you want to be prepared for as a realtor. Yeah, so we’ll put that down as a future topic home car. And if there is anything else that you have ran into as an agent that you think you should plan ahead for at closing, please let us know.
I do have a question. We’re going to chat in and take a quick poll on and see about that. It’s going to be about keys. OK, so this is the question is regarding keys. How how often? Well, I guess it can be a yes or no question is the majority of the time. Do your clients rekey the door with with new keys when they move in? Yes or no, Ricky? Yes or no?
No. If we really know that, I highly, highly, highly suggest it because somebody else has it who has the keys and especially with the garage door openers. Think about that. They stole the code in their car. They pull up and they drive in your house. Imagine that.
Yeah, that’s not so. Planning ahead, you also need to know what is supposed to be left behind on the disclose seller’s disclosure. It will have how many garage door openers that they’re going to leave. So if they use the car, that doesn’t count. So that would be a zero.
If they’re counting that one, it’s how many they’re physically going to leave. So on the disclosure, if it says to you need to make sure you have the to do all of this before closing, don’t wait and be reactive. It’s not fun. In the wrap, we’ll talk about you all leave behind. So that’ll be a wrap. OK, all right. So we’re only going to cover one more thing here. Let’s hit the bell and move on.