Timing the Final Walk Through
Dear Phyllis,
After a long search, we finally found the home of our dreams and are under contract to buy it. One thing that really doesn’t make sense is the final walk through. Our Realtor® explained that it is typically about five days before we close. But what if everything is fine at that time but when the owner moves, they or the movers cause some damage. Our Realtor® told us that we can’t really wait for the day they close because of the mechanics of escrow. Is that really true?
Susan
Dear Susan,
The purpose of the final walk through is to verify that the property is in essentially the same condition as on the date you contracted to purchase. If the seller agreed to make any repairs, you have the opportunity to verify that the repairs were properly completed. It is also wise for you to request copies of any paid invoices.
If you were paying cash, you could walk through and hand the owner a check. But when you obtain a loan the bank funds the loan (writes the check) and the deed is recorded (transferring ownership) the next (business) day. Further confusing the closing timeline is the fact that title companies now rotate the order of recordings. One day title company A will be first in line (8 AM). And the next day 2nd, then 3rd, etc. and work their way back to the first position. So although you have pin pointed your closing date, the hour of closing is predicated on this rotation.
