BIC TIP #1244: It Is Not Over Until It Is Over
As Stephen Long’s friend Allison likes to say, it is not over until it is over. In North Carolina real estate, there is a big difference between settlement and closing, and mixing them up can put you in an awkward spot, or worse.
Signing Is Not the Finish Line
Settlement is the part where everyone comes together, signs a mountain of paperwork, and shakes hands. It feels like the end. The pens are down, the smiles are wide, and the buyer is ready to celebrate.
But signing paperwork does not transfer ownership. The property does not officially belong to the buyer until the deed is recorded. That recording is what makes it closing, and that is when keys can change hands and the buyer can take possession.
The Welcome Home Surprise That Backfires
Stephen gives a perfect example. A well-meaning buyer agent wants to surprise their client by decorating the house, hanging a welcome banner, maybe leaving a gift basket on the counter. Sweet gesture.
The problem? If the deed has not been recorded yet, that agent is decorating the seller’s home, and they do not have permission to be there doing that. What feels like great customer service is actually entering and altering someone else’s property without authorization.
Get It in Writing or Wait
The rule of thumb is simple. Do not do anything to the house on behalf of the buyer until the deed is on record, unless you have express written permission from the seller.
That applies to decorating, dropping off belongings, starting projects, or letting contractors in early. If your buyer is eager to get started, talk to the listing agent and get the seller’s consent in writing. When in doubt, check with your broker-in-charge.
The Practical Takeaway
Settlement is signing. Closing is recording. Until the deed is on record, the house still belongs to the seller, so keep your hands, your decorations, and your buyer out unless the seller has agreed in writing. It is not over until it is over, and it is not closed until it is closed.
