Escrow

Why you should never hand over store keys before escrow clears the wire

Started by TundraMoss • November 02, 2026 • 10 replies
TundraMoss

Sold my hardware store last year. Buyers seemed solid, escrow agent said wire was "in transit" on a Friday. They pushed hard for keys so they could 'start inventory over the weekend.' I said no. Monday morning the wire actually landed, but the escrow officer told me they'd seen buyers try to take possession during the gap and then dispute the deposit. Keep the keys until the money is confirmed in escrow. Not worth the risk.

coffeeandcredit

This seems obvious but I've seen three deals in my area where the seller handed over the POS system password early because the buyer was 'family friend.' Every one turned into a mess. People get weird when they're inside the business before closing.

grippymudflap

What if the escrow wire gets delayed by a holiday weekend? Buyer needs to train staff, set up accounts, etc. Are you really making them wait until Tuesday?

saltandiron

Yes, you are. That's the whole point. Their timeline isn't your problem until funds clear.

juniperlane_1974

I let a buyer in a day early once. They 'reorganized' the back office and threw out two years of purchase orders I needed for tax records. Never again. Keys stay in my pocket.

dave_from_akron

Funny how the buyers always have a cousin who's a notary and a wire that's 'totally clearing by 3pm.' 🙄

bramblehollow

Depends on the escrow agent. If it's a reputable title company and they confirm the wire is initiated, I might allow a supervised walkthrough but not operational control. Handing over keys is different from showing them the breaker panel.

coffeeandcredit

Agreed with bramblehollow. I'd adc: put it in the purchase agreement. 'Possession transfers upon confirmed receipt of funds by escrow agent.' Then it's not a negotiation on moving day.

rustyquarter

Anybody else read the title and think this was about a corner store? Anyway, solid advice. Cashiers count the drawer before handing over the till. Same principle.

saltandiron

The real risk isn't theft. It's liability. If a customer slips and falls while the buyer is 'just looking around' before closing, who's insuranc covers it? Spoiler: the seller's policy might still be primary. Keep them out until the deal is funded.

juniperlane_1974

Also, if they have keys and thw deal falls apart, suddenly you're changing locks and explaining to your landlord why there's a stranger's inventory in the stockroom. Ask me how I know.

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