03-10-2010 08:18 PM
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.
03-10-2010 09:02 PM
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.
03-11-2010 07:24 AM
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 =)
03-11-2010 07:54 AM
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.
03-11-2010 05:15 PM
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!
03-11-2010 06:05 PM - edited 03-11-2010 06:06 PM
03-11-2010 06:23 PM
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.