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Regular Contributor
swordplayjunkie
Posts: 106
Registered: ‎08-13-2009
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Transfer of occupancy

Hi all -

 

Escrow is moving along swimmingly, but unfortunately I learned that I misunderstood a significant piece of the original contract. Now, in an effort to reconcile my misunderstanding I'm asking you all for some advice.

 

In the sellers initial counter offer she asked to have three days to move out. When I asked my realtor about this I was under the impression that nothing would get officially recorded (mortgage, taxes, insurance) until those three days have passed. It never really made sense to me, and of course, it doesn't. So today I learned that the seller will reside for three days in the home which I will officially own and make payments on.

 

To get on my moral high horse for a minute here: this person hasn't made a mortgage or property tax payment in about a year, and now wants to leech another three days of living rent free! Ughh. Ok end of rant here.

 

Have any of you dealt with a similar situation in your transactions? How did you handle it? Is this common? Am I overreacting?

 

Aside from my frustration about not having access to the property for three days while paying for it, I am more concerned about liability issues. What if during those three days something happens to the home? Or one of her friends trips and falls on uneven concrete during the move? What if the move causes damages to walls or doors? Who is liable? I feel that if we indeed need to honor this commitment there needs to be some sort of official document stating the conditions of this agreement. Also the contract only states that transfer of occupancy occurs three days after close of escrow, can I still ask her to pay me "rent" for these three days?

 

As always, thanks for reading.

Platinum Super Contributor
Nanomug
Posts: 10,421
Registered: ‎05-30-2009
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Re: Transfer of occupancy

I can see how this would bother you.  With so few standard sales and fewer short sales actually getting to close this doesn't come up much.  

 

Normally in standard sales possession is coe plus 3 days.  This has occurred in every home we've bought or sold with the exception of a vacation home where we weren't living.  In the scheme of things three days really isn't very long.

 

I can understand how you would hate (not sure that's strong enough) that someone who hasn't paid their mortgage is going to get to stay up to 3 days after closing. The 3 days will go fast.  Often recording occurs end of the day and the buyer finds out the next day.

 

Just because they have 3 days to leave doesn't mean that they will stay until the last minute.  Perhaps your agent could discretely ask what their plans are and encourage them to move sooner rather than later.  I don't think by law that you can pay them to move.   

 

While there isn't anything that you can do about it at this time, you can protect yourself by making sure that you have photos of the home before they move out.  This is something to do with any occupied home to make sure something wasn't damaged during the move out.

 

 

Regular Contributor
swordplayjunkie
Posts: 106
Registered: ‎08-13-2009
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Re: Transfer of occupancy

Thank you Nano, that's a really helpful post. I didn't realize that transfer of occupancy 3 days after coe is rather common and it helps me be more at peace with it.
Contributor
Analia
Posts: 32
Registered: ‎08-18-2008
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Re: Transfer of occupancy

Please...some mercy here...!! Think of it as a "pay it forward" situation. Not to mention that if it's in the contract there's nothing you can do. Suck it up darling! You never know if you'd ever be on that same place.

Patience pays =)

Platinum Super Contributor
Nanomug
Posts: 10,421
Registered: ‎05-30-2009
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Re: Transfer of occupancy

I'd like to add that when you sell your home those 3 days are huge.  No one wants to move out of their home until they know the deal is closed.  The act of moving is difficult enough without selling and buying.  The homeowner is often juggling two escrows and timing things down to the last second.  

 

There have been a smattering of people here who had major glitches toward the end and some ended up finding other financing.  Imagine what it would be like for the seller to find out on moving day that the transaction isn't closing or to find out after the movers pick up everything.

 

There have been lots of posts across the forums about not allowing sellers to stay a second after recording.  From what I can tell these are first time buyers.  It's a whole lot different on the selling side.   

Regular Contributor
swordplayjunkie
Posts: 106
Registered: ‎08-13-2009
0

Re: Transfer of occupancy

Mercy? This is a business transaction, not charity!

 

Of course I understand why someone would want to wait until COE until moving out and if this was a standard sale I would have no problem with this. But if someone has been living off the banks and thus the taxpayers there has to be time when that stops and accountability begins. Those three days cost quite a bit (you'd be surprised how much money three days add up to) and I am juggling my own rental and construction issues where every day and every dime counts!

 

 

Gold Trusted Contributor
Dag44
Posts: 2,884
Registered: ‎02-17-2009
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Re: Transfer of occupancy

[ Edited ]
Sword - I totally get where you're coming from. I would also have very little sympathy for someone who's been living in a home mortgage free for a year or two. They've had plenty of time to plan their escape - they shouldn't need those extra 3 days. And I'm also with you in that I'd be paranoid too if these folks were living in my house under my homeowner's insurance, even if it is for only 3 days - people have been known to do really bad/evil things when they need money. If this was a standard sale and the homeowners were juggling two mortgages to the very end and trying to time their move just right then I'd certainly try to be more flexible - obviously, though, that is not the case here.
Message Edited by Dag44 on 03-11-2010 06:06 PM
Regular Contributor
swordplayjunkie
Posts: 106
Registered: ‎08-13-2009
0

Re: Transfer of occupancy

Thank you Dag. I appreciate your supportive words. I have received quite a bit of criticism for my views and am glad to know that I'm not alone in my assumptions.

 

Gold Trusted Contributor
Dag44
Posts: 2,884
Registered: ‎02-17-2009
0

Re: Transfer of occupancy

Glad to be supportive Sword. I hope you have some measures in place to protect yourself should you decide to allow them to stay the additional 3 days.
Platinum Super Contributor
Nanomug
Posts: 10,421
Registered: ‎05-30-2009
0

Re: Transfer of occupancy

Here's what I want to know: how frequently does something happen in those 3 days that the buyer is liable for?  In my small world I have never encountered a problem with this with any home I've purchased or sold nor have I seen anything happen to any other sales I've witnessed.

 

Any realtors with info on this? 

 

Now picture this: you are selling your home to a buyer who demands you be out before/on coe.  You think everything is fine, the buyers have deposited funds to escrow so you have your stuff moved out and put into storage or planning to leave it on the U-Haul for a few days because the home you are buying is going to close concurrently.  Then the loan is put through quality control for a week delaying the close.