For the least stressful closing, experts advise choosing a Tuesday, Wednesday, or Thursday in the first three weeks of the month, although it is wise to avoid the 1st or 15th.Why?Title companies are busiest the last week of the month. For instance, if the buyer sympathizes with the seller’s situation, they might choose to let the seller keep their house. The sellers don't want to start moving until they know for sure the house is sold. Sometimes sellers request to leaseback after the close of escrow. The legal term for these per diem costs is liquidated damages. The date and time set to deliver the keys and final walkthrough were today. You want to negotiate if they do such things before closing. The amount of time a seller will have to occupy the property after closing is negotiable between the parties. Its fairly common, that said I usually have a deposit held either by me or sometimes title company if they agree to. Remaining in the house after closing is an item to be negotiated in advance between seller … 2. But that's me and because I learned it the hard way. He also said since it's less than 30 days and we don't do rent back, no lease will be signed which means the seller won't be protected as tenant and it will be easier for us to kick him out after 15 days. A commonly asked question by short sale sellers is “Will we get to stay in the house the customary 30 days after closing to move out?”. Your broker or real estate attorney should be able to advise you of the local custom. Use the forms provided by the state or write it specifically in the contract what is supposed to happen and what happens next if it doesn't. But the owners would have to qualify as tenants. I've bought a lot of properties from people who would never qualify as anybody's tenants. The complaint goes to trial. Maybe everything works out, or maybe 30 days becomes 45+ because their new apartment isn't ready. Her son in law is a lawyer and I bet he recommended it. Unwilling or unable to move out is not a valid reason to extend the closing date unlike a title issue where Seller does have an automatic 30 day extension built into the Purchase and Sale agreement. Personally,  regardless of whether it is a short sale or not, I never think it is a good idea for a seller to stay past the closing. If the buyer purchases with any tenant in possession, get braced for fun and games, eviction. Apparently it is more normal. 1. The full month after closing does seem long but it can be whatever length you agree to. I have seen this happen before, and it is simply the failure of the realtor to protect the buyer. If someone is still living in the house also you can't see any unknown damage with all the stuff there. This cannot occur in a short sale because the foreclosing lender receives all the money at closing. Typically, contracts for the purchase of property include an agreed-upon date by which closing will occur. Do whatever you can to make the seller follow through. The seller wants to stay in the house for two days after closing. In buyer's markets, buyers will generally insist upon occupancy at closing and have been known to refuse to close if the property isn't going to be vacant at closing. The agent works for your brother, if the agent is not doing what he asks then he needs to get a new one. Buyers generally might be expected to give the sellers 7 to 10 days to vacate the home after the closing date. 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That gives the seller plenty of time to get organized for the move. That gives the seller plenty of time to get organized for the move. It was a young couple moving out of a parent's house, so I guess the extra 90 days didn't bother them much. If a buyer wants to move in early or the seller stays late that's fine but everyone has to agree and somebody has to pay. The seller wants some extra time after closing to stay in the house. I agree it would be best to have the sellers out of the house at closing and avoid legal complications later. I'm bringing a certified check for $600 or something for the leaseback and will have to sign some paperwork (basically a super short term rental agreement.) Is your brother getting a loan that requires him to be an owner occupant? I have seen owners pushing TV's on wood floors before and scratching to h%ll and back. If you signed up for BiggerPockets via Facebook, you can log in with just one click! Fair Housing and Equal If the box is checked in our contract that possession is at closing..the seller has to be out the day before and ready for a walk through. Your real estate agent can negotiate a new closing date that generally will add an additional 10 to 30 days to the closing date, giving the buyer more time to tie up their loose ends. In seller's markets, buyers will often give sellers several days to move. Find KY real estate agents Rainmaker 6,068,935 Roy Kelley. All that said, I don't think it's all that uncommon to have a leaseback situation in a contract for a house sale. Keep the following in mind as you approach your closing: Compromise is important when determining your moving date. 4. How can a Realtor make this contract, representing a buyer? Just make sure your brother isn't exposed on the insurance aspect. Subscribe today and get the Oct/Nov issue delivered to your door! It all depends on how your contract is written. Leasebacks can also facilitate a faster closing than would otherwise be possible. What's the reason you're reporting this blog entry? on ActiveRain. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them Buyer’s Possession: Seller shall deliver to Buyer possession of the Property in its present or required condition, ordinary wear and tear excepted: B) according to a temporary residential lease form promulgated by TREC or other written lease required by the parties. Once we had a seller need to stay and made them sign a lease and pay rent. For this reason I said it wasn't worth it to me for the risk exposure. Failure to do so could cause a seller to have to vacate the property in less time after closing than he/she had planned. My biggest mistakes to date were assuming that the sellers would have income from seller carry backs we created. The seller would be living for free at the buyer's great expense. The closing date is when all paperwork is finalized, closing costs are paid, the title is transferred, the buyer receives the keys, and the seller is free from the property. Write back in September if the Seller has not closed. Start analyzing real estate properties, we do the math for you. Hopefully your brother has some sort of basic short-term rental agreement in place. Where does that come from... in my area a deal closes on the 10th sellers are out on the 10th unless there is some rentback agreement covering a few days at most... if it is a weekend frequently there is some kind of agreement to facilitate moving out or moving in but a weekend is far different from 30 days. The longer the seller stays in the property after closing, the more challenges you are going to be faced with. Typically a seller remaining in a home 1 week or more after closing would entitle the new buyer to rent. I agree I would never let someone have possession of my house once I bought it without the proper leaseback agreements in place. Just heard that the sellers' house they are buying fell through and they are probably going to want more time. If the seller has a contractual closing of July 15th you are a little early to grouse about the situation. If the seller intends to lease back the property for fewer than 30 days, then on the PAA form, check the box next to where it says, "Seller to Remain in Possession After Close of Escrow." Actually ended up renting them (after the 90 days) my 2000 sq ft detached garage on the same property for $1,000/ month for 5 months. Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood. I think you're stressing your brother out over what probably is nothing @Joshua D.  . It was rejected initially, but a week later they made a verbal counter offer and we accepted. Are you sure you want to report this blog entry as spam? Today it is a red hot seller’s market. Or both. From your post, I presumed that this is for a primary residence for your brother? CAR Seller in Possession Addendum – for less than 30 days only, 1 page addendum. Being Flexible With the Closing Date Could Allow You to Play Hardball on Other Issues. Consult your insurance agent prior to change of ownership and possession because insurance coverage may be limited or terminated. We had no issues. But it was a triplex and the buyer was moving into a vacant unit. Find local real estate meetups and events in your area. If he is unable to occupy the property in the stated period of time, he could face legal issues on his side. The timeline from day of listing the house until closing is measured months. Unless the contract specifically states otherwise, a "reasonable delay" is allowed. I made an offer on a house. I just said "too complicated, nothing to gain for me, sorry". They were looking for flexibility on possession as much as they were looking at selling price. I kind of freaked out for a bit and he called his realitor and she said this is "normal in their area and happens all the time". Is it just me or could my brother be in for a mess! Found this on the Cincinnati Area Board of Realtors website (http://www.cabr.org/legal-matters/realtorlawyer-cmte/the-purchase-agreement): This clause identifies the date that the seller will vacate the property and what obligations/rights the seller has with regard to utilities, rent, and condition of the property after vacating. Or where they are going to go. I have done it for a great price or in a competitive market. Some sellers provide occupancy at closing. If there is a change to the closing date, the occupancy date must also be reviewed to determine if there is a need to also make an amendment to that date. Lv 7. Yes I would get a rental lease signed plus deposit and market rent just like any other renter. . © 2020 ActiveRain, Inc. All Rights Reserved The buyer may have concerns that the seller may have difficulty moving out in time. Hence they'd have money and resources to pay rent and/or move. Such a leaseback can be great for sellers because they have the peace of mind of not moving until after the closing funds are deposited into their bank account. @Joshua D.   No. Fair Housing: I've known several people who have done it themselves and we are doing one next week. It's not like the police come and say "your time here is up". This seems like trouble waiting to happen. This, of course, depends on the buyer. Our son's realtor called and said the seller was responding to son's offer but wanted the closing in 19 days and wanted to live there until the 30th. Opportunity, Real Estate Agent with Keller Williams Realty Louisville East (502) 664-7827, Northern Maine Real Estate-Aroostook County Broker, Pacheco Realty & Financial Services - Fremont, CA, Coldwell Banker Cascade Real Estate - Wenatchee, WA, EXIT Realty Beatrice Associates - Middleton, MA, Helping Massachusetts Home Buyers and Home Sellers, Keller Williams Realty - Atlantic Shore - Little Egg Harbor, NJ, Keller Williams Realty Louisville East (502) 664-7827, Dave Halpern, Realtor, Keller Williams Realty Louisville East, Shiny New CRM Objects - A Brief Guide to Selecting a CRM, Crawl Space Problems Often Originate From High Above, Virtual Realtors, Lower Commissions, And Other Cheap Thrills. There is no set rule as to when occupancy must be granted. I only did this once, and it also was going to be a primary residence for me. I want to tell everyone a little story about Occupancy After Closing and why it is so important from a buyer's position to have a written document. Don't get me started on the owners with too much stuff, that are actually hoarders. Trouble with long-time entrenched owners (and tenants) is that they are often delusional about what they can accomplish. Insurance Coverage for Seller Rent-Backs Sometimes buyers will insist that sellers maintain their existing homeowner's insurance policies during the rent-back period. No amount of money will solve that problem. Worked out well and I am glad that I did it. In other situations, the seller may request 30, 45 or even 60 days of occupancy after the closing of the home. There is no reason the buyer should be waiting on the seller. I was moving out of state and was not sure that the buyers (spotty credit) would close. Seller Occupancy After Closing . Buyers often agree to give the sellers a week to 10 days after closing to vacate the property completely. @ Joshua D. owners might be expected to give the sellers stay, they often withhold a amount... 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A Realtor make this contract, based on conditions and contingencies they hadn ’ t to., do the loan docs require that he occupy the property in less time after closing would entitle the buyer! Specific terms regarding vacating and removing personal property let them stay a couple days closing... Those are the things the current owners might be expected to give the sellers specific... Hardball on other Issues in your neighborhood have agreed to 7 more days, a does!