‘Completion’ and ‘possession’ are common terms in the real estate lexicon. While it’s easy to assume that these terms are interchangeable, they’re actually entirely different. Upon understanding the difference, you’ll see the strategy involved in choosing dates for both completion and possession and the importance of each one.
Simply put, the completion date is the day the sale proceeds and the property title change hands between buyer and seller. The seller receives money from the buyer, and in exchange, the buyer obtains the legal title to the property. The possession date is the day the buyer is presented with the keys, also known as the move-in date.
Distinguishing the difference between the two is important when you plan to place possession ahead of completion. If possession comes before completion, the buyer is contractually entitled to the keys before the seller receives payment for the house. As a seller, would you be willing to hand over the keys to your home before receiving payment? It’s highly unlikely. 
To ensure that completion always comes before possession, these dates are typically staggered one to two days apart. So, for example, if today were the completion date, tomorrow could be the possession date. With a well-executed strategy, these two events could fall on the same day if you ensure possession has a time parameter— say, 5 pm, for example— to provide enough time to transfer the funds and title registration.
Aside from the transfer of funds and the title registration, completion speaks to the point at which the property shifts in legal liability. In other words, on the completion date, the new buyer becomes legally responsible for the property even though the keys are exchanged on possession day.
If, for example, a fire or flood occurs on the completion date, but the buyer scheduled their insurance policy to commence on the possession day— official move-in day— the home would be uninsured, and the buyer would be left wholly responsible for any damage. Similarly, if any injury occurs on the property and the homeowners are sued, no insurance would be available to cover this ahead of possession day. 
The possession date also signals the next opportunity to view your new home. After a sale becomes ‘firm’ or ‘unconditional,’ the seller is not obligated to provide any viewing opportunities until the possession date unless the contract paperwork states otherwise.
In resale properties, it’s possible to insert a clause that allows for additional viewing opportunities between the unconditional date and the possession date, which can be helpful to measure for furniture, plan for interior design, or give tradespeople access to write quotes if the buyer is planning to renovate the home.
It is not common to have regular access to preconstruction properties until the final walkthrough, an event scheduled ahead of completion. In the case of preconstruction contracts, it is unusual to be permitted to insert a clause for additional viewing opportunities, given that there would be too much disruption to construction and too much risk to the building activity.
If you’re looking for advice on purchasing a home, our advisors will guide you every step of the way. Contact a rennie advisor to learn more about buying or selling a home in the Lower Mainland.
