Real Estate

Same completion date for purchase and sale

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  • Apr 27th, 2016 11:37 am
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[OP]
Sr. Member
Apr 5, 2003
896 posts
249 upvotes
White Rock, BC

Same completion date for purchase and sale

Is this advisable? We sold our home with a completion date at the end of May. We then purchased a new home with a completion date at the end of May. The seller of our new home is now wondering if we want to complete at the end of May (same date). This sounds good as we don't need to live with family for a month and only move our stuff once. Is this a good idea or is there issues with the two completion dates happening on the same day. Our mortgage will be closed out and a new mortgage opened at a different bank.

Example:

Completion of home we're selling: May 25
Completion of home we're buying: May 25

Possesion of home we're buying: May 26
Give up possesion of current home: May 27

Good idea or bad? Just not sure if there will/could be issues with the timing of the money transferring.
4 replies
Deal Guru
User avatar
Mar 23, 2008
12427 posts
8924 upvotes
Edmonton
You should probably talk to your professionals (mortgage and legal). But IMHO, you should make sure you have a Plan B anyway. Like, what are you going to do if one of them gets delayed by a day or 3? Is your financing bridged (do you need the proceeds of the sale of your house to pay for the new house), for example? Will you have a place to store your stuff for a couple of days? Etc...

C
Sr. Member
Mar 1, 2014
663 posts
755 upvotes
It is advisable if you make sure things are taken care of. With same day closings you won't need a bridge loan, and avoid its costs. Bridges loans are not something lenders really like, and some of them don't even offer any.
[OP]
Sr. Member
Apr 5, 2003
896 posts
249 upvotes
White Rock, BC
Yea I don't need a bridge loan now because we are supposed to buy one month after we sell. I am just worried about something going wrong and causing all sorts of havoc and stress.
Deal Fanatic
User avatar
Feb 2, 2014
9066 posts
2579 upvotes
Toronto
noodles wrote: Is this advisable? We sold our home with a completion date at the end of May. We then purchased a new home with a completion date at the end of May. The seller of our new home is now wondering if we want to complete at the end of May (same date). This sounds good as we don't need to live with family for a month and only move our stuff once. Is this a good idea or is there issues with the two completion dates happening on the same day. Our mortgage will be closed out and a new mortgage opened at a different bank.

Example:

Completion of home we're selling: May 25
Completion of home we're buying: May 25

Possesion of home we're buying: May 26
Give up possesion of current home: May 27

Good idea or bad? Just not sure if there will/could be issues with the timing of the money transferring.
Same day closings are fine and are done often. I would recommend using a good real estate lawyer and staying in touch with the lender to ensure money is released on time. I personally have never had issues and my real estate lawyer has never come across issues either...you should be fine.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative

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