At what point does the seller's responsibility for expenses end, according to closing terms?

The seller's responsibility for expenses typically concludes at midnight the day before closing. This is rooted in the common practice of prorating expenses based on the closing date, ensuring that the seller is only responsible for costs incurred during their ownership of the property. Once the day prior to closing has passed, the buyer assumes responsibility for expenses going forward.

By establishing this cut-off point, it helps clearly delineate financial obligations. This prevents confusion regarding who pays for services or utilities that may overlap with the actual day of closing. Understanding this convention is essential for both sellers and buyers, as it ensures each party knows their responsibilities and can properly plan for the financial implications of the transaction.