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happyladi

Seller staying in the home for two days after closing

Happyladi
14 years ago

My daughter put an offer in on a house and it was accepted. The seller wants to stay in the house for two days after closing. The reason she gave is that she is concerned that the sale might fall through. Her son in law is a lawyer and I bet he recommended it.

My daughter is willing to allow this but with a $500 refundable deposit just in case. She is willing not to charge any rent. Her son in law thinks she should be allowed to stay without any rent or deposit.

My daughter is pre approved and is putting 20% down. There is no special reason for this woman to believe the sale might fall through.

What do you think? Allowing this without a refundable deposit seems wrong.

Comments (71)

  • sylviatexas1
    14 years ago

    ...forgot to say that seller or buyer occupying the house for a lengthier time before or after closing isn't common, but sometimes there are reasons.

    Several years ago, a local builder sold his house & leased it back from the buyer for (seems like) 6 months while the buyer worked out his employment contract in another state; it worked for both parties, because it gave the builder time to build his new home, & he didn't have to move twice.

  • triciae
    14 years ago

    Igloochic,

    I'm a banker also (construction lender, commercial loan officer, & work-out officer).

    You made the following comment, "...but the owner (and mortgage holder) needs to take possession of a home at closing. You can't hold escrow funds, because to do so clouds the title and the lender won't allow this."

    I've done lending in seven states & that was untrue in all seven.

    "Use Agreements" can & do occur as needs dictate. Escrows can be & are held as needs dictate. Sometimes, funding will be delayed until the escrow is released by not always.

    Nowhere have I ever encountered any statute or bank regulation that requires a purchaser to physically occupy the premises if that's what you meant? The "Use Agreement" is, basically, a short-term lease that may (or, may not) require a monetary compensation. For instance, when we purchased our current home the holder of a second lien refused to release (insufficient sale proceeds to clear the lien). Our moving truck was already on the way from out-of-state & due to arrive for unloading that afternoon (Friday). The seller gave us a "Use Agreement" for the weekend (free of compensation) & we closed on Monday after a weekend of negotiations with the second lien holder (he ended up taking a junior position on another property owned by the seller). Our loan documents were signed on that Friday. Funds were not disbursed until Monday afternoon. So, in essence, there was a 2-day escrow. Not uncommon at all. Not usual, either. Just a routine part of banking.

    Oh, we also had a longer running escrow on this closing I almost forgot about...the seller had to finish the fencing. We escrowed $5,000 & that stayed open about six weeks. No big deal. The title company held the funds & dispersed to the seller when he provided receipts & lien releases from the fencing company. Again, common...especially with construction lending.

    /tricia

  • susana_2006
    14 years ago

    I think that this is regional. I have bought & sold houses in Calif. & they have been available to the buyer immediately after closing.

    When I bought a home in Colorado, I was told by the realtor that it was customary there that the seller have 72 hours after closing to vacate. I said that was really new to me & he told me that I should have made it clear in the offer if I had wanted immediate possession. (Of course, that was one of the things that he was getting paid for -- & he should have pointed out that point in the beginning).

    Anyway, the seller stayed for 72 hours after the closing -- no harm done. But I'd advise others to be sure to put that in the offer, if they want immediate possession.
    Susan

  • devorah
    14 years ago

    We have always given and received 3 days to move out. I think it is regional. We never had a problem with it. Once we did a rent back until our children finished out the school year. That was upfront in the purchase and sale agreement.

  • C Marlin
    14 years ago

    igloochic, despite your experience, two days is common in many areas, obviously not yours. But it is not nuts, nor disallowed by banks.
    It is not a lease or rentback as brickeye said, your above post refers to a lease agreement, the OP was not talking about a lease back, only possession. Ownership is not changed by taking possession in 48 hours. There is no lease agreement.
    I've bought and sold in different area of CA, one area it was common to give possession 48 or 72 hours after closing. Another 5pm is common.
    I've never as a buyer or seller, had a problem with final walk through with furnishings. Personally, I will not vacate my house before I get my funds when selling.
    Also, holding funds in escrow doesn't cloud title.
    Your experience in your state may be different, but what you say so emphatically is just not true in all states.

  • brickeyee
    14 years ago

    "Just managed compliance for years...and in this state, and all others, if you apply for a first mortgage claiming it's your primary residence it's a violation of HMDA to lease it back..."

    That is why you do not call it a lease.
    Do NOT establish a 'lease agreement' or anything that smacks of a lease.
    It is 'holding over' if you need a term to use, but NOT a lease.

  • Happyladi
    Original Author
    14 years ago

    What they finally agreed to: The seller has two days after closing to move her stuff out. She pays a $500.00 deposit. She and my daughter do a walk through together the second evening, if everything is okay my daughter returns the $500.00. I am not sure about the utilities.

  • brickeyee
    14 years ago

    Talked with an RE attorney that works fir HUD.
    HMDA establishes reporting requirements for lenders and does not say anything about how transactions are conducted.

    While the lenders may object for other reasons to 'leasing back' (like getting the owner occupied interest rate on an investment property) it is not prohibited by HMDA.

    Attempting to use a reporting law to set conditions of sale is not correct.
    While it may cause a reporting issue, that does not make the transaction in and of itself illegal.

  • terryinmd
    14 years ago

    I'm in MD. 6 years ago we were having a house built. We sold our house in Feb, closed in March, and rented back (yes the realtor called it a rent back) until the house was completed in April. Our realtor said it was done all the time.
    The buyer had no problem with this, in fact, they would have liked us to have rented back a little longer, because we wanted the rent back to end April 15, and their lease wasn't up til the 30th of May.

    We had an insurance policy in place to cover any appliance breakdowns, but there weren't any. Never heard from anyone about any issues after we moved out, so I guess they were happy.

  • sonepi
    14 years ago

    When I bought my current home 6 years ago, seller wanted to stay 2 extra days. I did not want to do it, but my DH was willing. In TX, there are documents to cover this kind of situation, but I had never had this come up with any other homes I've owned. We ended up doing what Brickeye suggested. Charged 3 x PITI per day, non refundable and they had to keep insurance in place. We did not do a walk through before they left. We had already closed, but I wish we had. There was some damage to a bathroom marble counter I did not notice on final walk-through that was there after they moved out.

  • neesie
    14 years ago

    I live in the upper Midwest and have never heard of 2 days or 72 hours being the "norm" after closing to move in. When we purchased homes we got the keys at closing and headed out to the parking lot where our moving truck was packed and ready!

  • sparksals
    14 years ago

    Happilady,

    I hope there isn't damage MORE than $500. WHy should your DD refund the money? Basically, the seller is staying on your DD's dime and not paying a red cent for it.

  • ncrealestateguy
    14 years ago

    What in the world can a seler do in those two days that they could not do in the previous 45 days that the house is under contract?
    I would not allow a total stranger to live in my home, use my appliances and utilities even if it was the custom.

    BYW... anything after 7 days here in NC has to be drawn up as a lease agreement.

  • susana_2006
    14 years ago

    As a conscientious seller, I would not want to stay. I think that you're just inviting Murphy in & could end up in some rather sticky situations.

    When I sold my house in Calif., we had the house tented for termites approx. a week before closing. When the gas co. employee came to relight the pilot lights, the water heater pilot light kept going out. I had a plumber (realtor's recommended guy) come & he replaced a part. It stayed lit for about two days & the plumber was working on the water heater as I was packing the rental car to go to the airport.
    I left all the paper work for the new owners on the table -- with the guarantee of the plumber that he would get it fixed & I also explained that the realtor had recommended this plumber & he should be helpful in case of problems.

    So, no I would not stay after closing no matter how difficult it would be.
    Susan

  • heimert
    14 years ago

    happyladi -- that seems like a reasonable solution. I probably would have made the amount much larger, but what's done is done.

    One way to handle it is to leave a large amount in escrow that is not released until after they've moved out and you've had a second walk through. That way the seller is also protected because you can't just keep your money. Not sure what the house price was, but I might have asked for 1-2% of the purchase price, plus a seller credit of 2 days of PITI.

  • brickeyee
    14 years ago

    "I left all the paper work for the new owners on the table -- with the guarantee of the plumber that he would get it fixed & I also explained that the realtor had recommended this plumber & he should be helpful in case of problems."

    I would have refused to settle if purchasing.

    the house should be in the same condition as the data thte contract was signed.
    If you need more time to affect a repair I would have delayed settlement, demand that enough $$ be escrowed to redo any repair 'in process,' or demanded enough money to have the repair done to my satisfaction.

    If you failed to pay the plumber the new owner is on the hook.

  • sylviatexas1
    14 years ago

    Brickeyee, do you *ever* just say, "I'd like to handle it this way" or do you always 'demand' & 'refuse'?

    It was just a water heater problem, & the seller agrees that it was to be cured at her expense & evidently did so.

    (& did Susan have the water heater problem prior to closing or after?)

  • devorah
    14 years ago

    The last time we moved, I had already rented an apartment for the transition, but I still didn't move out entirely until after we closed. That was partly due to the sellers themselves. They mentioned to me that the house they sold in Chicago had failed 3 times to make it to the settlement table, twice failing on the last day. It had never occured to me up to then that a sale would fail at that late date. It also worried me that the sellers having experienced themselves would be less hesitant to do that to someone else. I also knew that they were buying my house because it was the only one for sale in my neighborhood and not because they were in love with it. Having 3 days to clean without the furniture present was also very helpful. I worked on that even while they were there.

  • susana_2006
    14 years ago

    The water heater pilot light went out two days before closing. As the seller, I did feel that it should be repaired at my expense. Since my realtor was also the buyer's realtor, I asked his office to send the plumber. The work was guaranteed for 1 year -- I paid $200.00 for the repair work. On closing day I awoke to find no hot water. I also was scheduled to fly home to Iowa at noon. I had no time to do anything but call the plumber who came right away.
    As I said, I had a guarantee in writing that the repair would be good for one year. (I had also purchased a home warranty for the buyer). I left all the paperwork and a note explaining what had happened. I suggested that should there be problems, the realtor (who had received a double commission & who had recommended the plumber) would be the one to help the buyer.

    Anyway, it went just fine. The closing went well and I believe that the buyer had plenty of hot water.
    Susan

  • brickeyee
    14 years ago

    "Brickeyee, do you *ever* just say, "I'd like to handle it this way" or do you always 'demand' & 'refuse'?

    It was just a water heater problem, & the seller agrees that it was to be cured at her expense & evidently did so.

    (& did Susan have the water heater problem prior to closing or after?)"

    I have been in business long enough,and had enough problems over the years buying and selling properties to not take anyone word for anything any more.

    While Susan appears to have made the repair and paid for it a less honest person could have bounced the check to the plumber and been no were to be found.
    The new owner would be forced to pay, or face a mechanics lien on the property.
    I have gone after people who stripped houses after the contract was signed.
    They figured I would be forced to close despite the massive damage they had done.

    Not everyone keeps their word.

  • susana_2006
    14 years ago

    My point in telling about my experience was to show how a (relatively) minor problem can cause such turmoil depending on the timing of the problem.

    As the seller, I think I did the right thing -- calling plumber, paying him, and receiving a guarantee in writing. I did not inform the buyer (two days prior to closing). I thought: Problem solved.
    Of course, Murphy entered the picture on the day of closing when there was no hot water. I called the plumber, informed the realtor & left all the paperwork on the kitchen table.
    I had a plane to catch.
    I had no time to inform buyers (and I thought this was the realtor's job anyway) The realtor had dual agency and was also representing the buyer. I had used the realtor's plumber and I felt that this could best be handled by the realtor, if there were problems later.
    Since the realtor received a $30,000 commission on the closing day, I don't believe that he advised his buyer to "refuse to go through the closing" because of a hot water heater problem. I'm sure that he would have gladly bought a new water heater to make sure that that closing went through.

    As I said, my point is that I would not stay in a house after closing (as the seller) -- this experience caused me enough worry and distress.
    Susan

  • brickeyee
    14 years ago

    Of course you continue to be at risk of things failing, just like before you sold the place.

    If you do not have another house vacant to move into before the settlement date it can be an issue.

    Storing three 40 foot trailers from a move, even overnight, is not an option most of the time.

    The movers I use send two 40 foot trucks, and a crew of 6 men.
    They will start at 6:00 AM and go until the move is finished.
    If there is more than two trucks of 'stuff' one is quickly unloaded and returns for another batch.
    The cost of keeping a truck for two days is rather high.

    Life has risks.
    The place could burn down also, or get hit by lightning, or a freak flood.

  • southernstitcher
    14 years ago

    Our sellers got about 6 free days from my husband. He bought this house one year before we were married, and was way too nice. Their realtor called and asked twice for an extension and he granted it both times. The realtor didn't even offer any rent back money, and my DH didn't ask for any!!
    These sellers did only one thing on the list of 8 repairs agreed upon after inspection. Of course my too nice husband also didn't do a walk through at all! Ask me why I handle all of this stuff now, and yes, I'm tough. Given a chance, people will definitely put the screws to you.

    Had it been me, I'd have made sure the walk through was done, and wouldn't have gone to closing until the repairs were made. And yes, they would have paid dearly for those extra days. Every single time I've "trusted" someone I've gotten burned.

  • josephwin
    14 years ago

    I would like to know the Texas law on the number of days a buyer is allowed to back-out after closing. What are the rules/laws governing it?

    If it is 3 days, then I can give seller 2 days to vacant or I will/may rescind closing! Is this possible?

  • sylviatexas1
    14 years ago

    I am not an attorney & this is not intended to be legal advice, but...no.

    Right of recission applies to certain contracts;
    the purpose is to protect the consumer from impulse buys offered by such entities as encyclopedia salesmen.

    You cannot "rescind" a completed closing.

    Your date of possession is spelled out in the contract;
    if you agreed to allow the seller 3 days, you can't threaten them before they've had their 3 days.

    If the seller doesn't give you possession as agreed, you have to evict them, which is why the Seller's Temporary Lease is so important;
    it spells out the terms of the seller's occupancy of the house after closing, & acknowledges that the seller is now a tenant & that you are the landlord.

  • brickeyee
    14 years ago

    "If the seller doesn't give you possession as agreed, you have to evict them, which is why the Seller's Temporary Lease is so important;
    it spells out the terms of the seller's occupancy of the house after closing, & acknowledges that the seller is now a tenant & that you are the landlord."

    The last thing you want is a landlord-tenant relationship.
    That can create more problems than it solves since you would then have to deal with any landlord-tenant laws.

    You want the person holding over to be nothing more than a 'tenant at sufferance.'

    They can be removed for trespassing, without invoking any landlord-tenant law.

  • sylviatexas1
    14 years ago

    not in Texas.

    The law here was amended to protect both sellers & buyers after someone in possession evidently claimed homestead rights since there was no other document in place stating the terms under which whoever it was (could have been either) had possession of the home.

    The best way to protect yourself without killing your sale or purchase is to have the agreement for occupancy/possession *in writing* in *whatever format is promulgated in your state*.

  • davidandkasie
    14 years ago

    when we bought our house we were purchasing form an old man. the day we looked at it he explained tha the would require 30 days after closign so that he could move his stuff 2 states away. i agreed to this with no problem since we had to give our landlord 30 days notice before leaving and we did not want to give notice before we closed either.

    well, he died prior to closing(good thing we did not give that notice!), and his son and his girlfriend moved in. he was supposed to just be there to get stuff out, but he was trying to keep the house. he used the full 30 days, the only reason he left on teh 30th day was we were literally bringing our stuff in teh front door and tossing his out the back. we also told him that 1) we had the utilities sched to be shut off that afternoon since he had not done it and 2)exterminators would be there later to fumigate and no one could come in teh house, and 3)he watched as i changed the locks on all doors. we got a key to the house at closing, and he had at least 1 key. i did not trust that he would return all keys, so i just went ahead and changed the locks to be sure. i also wiped out the garage door codes since he gave me only 1 remote to operate 2 doors, when there should have been 4.

    would i do it again, HELL NO! my wife quickly forgot that 30 day agreement and every other hour was chewing me out to get them out of our house. they seemed to want to ignore it as well, and would have gladly lived there as long as i let them.

    my parents rented back on a per-day basis to the previous owners of their house. their new house was supposed to be finished prior to close but was delayed about 3 weeks. they had no issues at all though, plus they were my mom's cousins though we did not know it when we all first visited the house.

  • brickeyee
    14 years ago

    *whatever format is promulgated in your state*.

    While some states have 'approved' real estate contracts they do not appear to be in the majority.

    The contract is whatever the seller and buyer want in it.

    You do have to satisfy the basic rules of contract including reducing it to writing, describing the asset to be sold, and what consideration is to be paid.

    In 30 years I have only had a problem once with a tenant staying after settlement, and a FedEx letter from my attorney had them out 24 hours latter.

  • kterlep
    14 years ago

    I had a bad experience. We put in the offer, stating immediate occupancy, the seller accepted. A week before the close date, the realtor (nothing better than a buyer's and seller's realtor) called and said the seller was freaking out because he thought he would have a month to get out. She asked us if we could PLEASE give him 2 weeks, we said it was OK (we were planning on moving in 1 month after close anyway, to make sure that we had time to get in and do some work).

    I showed up for the pre-close walkthrough, and the realtor was there. She said she didn't have a key, couldn't get in touch with the seller, and that everyone was waiting at the bank for the closing. I stood my ground and said that we must get to see the building. We walked through, and it looked pretty much like it had. She did remind us again that the seller was going to install the garage door openers (there are no springs and it's hard to open them at all) before he moved out. She rushed us out...

    The closing went fine, except the seller had a screaming fit about the move out date and threatened to back out of the sale (yes, the house had been on the market for nearly 2 years and he'd had 3 sales fall through due to financing). He wanted to keep his boat in our garage for 1 month, we were fine with that.

    Two weeks later, we got in the car to drive the 5 hours to the new house, and my parents also drove 5 hours (from another direction)...and I got a call on the way. It was the realtor, explaining that she'd had to hire her daughter to get him moved out, and the house was a mess, and she was going to be cleaning it.

    When I got there, there was a garage full of crap, and another garage with boat furniture. Oh, and the springs and garage door opener hadn't been installed. And there was a plumbing leak upstairs, and a waste line that had been covered up in the junky basement was cracked and leaking (yes we had an inspector, he couldn't get to this part of the pipe). And there was a big hole in the floor where there had been an area rug under the bed. AND the realtor informed us that the seller had promised her daughter the hammock that was installed on our back porch (held up by 2 6x6 posts that were installed through the deck). And, the antique fireplace cover was missing.

    The realtor did pay for a plumber to fix the two plumbing issues. Told me pretty much that I was SOL on the rest. Oh, and she brought me a rock with our name on it. Nice.

    Then, there was the evasive smell of urine. Couldn't quite figure it out. Then, realized that the toilet brush holder was filled with this guy's urine, GROSS! Got rid of it, scrubbed the entire bathroom. Smell was still coming back. In desperation, I took the toilet off the floor, and this guy's pee was all under the toilet!!! gross!

    1) I will only buy vacant houses - they are very much WYSIWYG.

    2) I will never allow a seller to retain access to a property following closing.

  • theroselvr
    14 years ago

    To the OP, how is your daughter making out?
    When does she close?

  • cda44
    14 years ago

    I've been in title/escrow for 12 years and I've DEFINITELY seen things fall apart at the last minute. When we sold we wrote in that we had two days after closing to vacate. It was in the original counter to the purchase/sale agreement. Why would I pack up my ENTIRE house only to have the thing fall through at the last minute and have to move BACK in? Trust me, it happens. Maybe it's not the most common thing, but it's not that big of a deal. It just gives the seller time to get their stuff out after closing. Thankfully, our buyer was nice enough to let us do so.

  • Happyladi
    Original Author
    14 years ago

    An update, my daughter closed on her house May 27th. She did a walk through with the seller on May 29th and everything looked fine.

    She is busy painting some of the rooms before she moves her furniture in as all the walls were pale pink. She is discovering that painting is a LOT harder then she thought. She is thinking that pale pink might be just fine in a few of the rooms for a while. LOL

  • gmp3
    11 years ago

    In my area the standard seems to be possession 24 hours after closing if the home is occupied. The reason for this is so the sellers have time to move belongings to a new home. With so many mortages being delayed or not closed, I don't blame her for asking, regardless of the financial situation of the buyer. I have a friend whose buyer fell through the day of closing, and it was a nightmare. She had somewhere to go, but had to unpack to restage her home.

  • Debbie Downer
    11 years ago

    We dont do this in Wis - never heard of it.

    What am I missing here. Isnt that what the earnest money is for - if the deal falls thru then there is some compensation for the seller.

    No matter what happens at closing, the seller is still having to line up either an apartment or purchase a new house to move to. So if the deal falls through, what happens? They cancel their new lease (not bloody likely) and stay in their old house? They don't move into their new house even if they're making payments? They unpack all their boxes and move back into the old house? It doesn't make sense. What exactly are the two days for - I'm just not getting it!

  • kirkhall
    11 years ago

    The original post is 3.5 years old.

  • azmom
    11 years ago

    "the original post is 3.5 years old", it is irrelevant.

    The subject is still valid and all the old and new inputs are helpful.

  • HU-257067996
    3 years ago

    I'm in OC California and I just put an offer in for a house in Corona. As I was reading the offer contract I noticed the agent had added option for seller to stay 2 days after closing. She said they write that into all their contracts and I said remove that because I don't want any misunderstandings after closing. They don't need an extra two days. If sale falls through they have my $10k earnest deposit and if they paid $10k to move stuff out then take my $10k and move it back. No harm, no foul.

  • jennsbabysky
    3 years ago

    It is common here, but not always used. If a seller is using the funds from the sale of their home to purchase another home, their "new" home might not yet be available. So, it is not unusual for the seller to stay for 48 hours after close of escrow on the sale of their home to allow time for the sale to close on their new home. That way they can move from one property directly to the next.

  • Kate
    3 years ago

    It was the norm in our area of Ohio to allow sellers to stay for a MONTH after closing. Things have changed since then and occupancy is typically at close. I also was worried that our sale would fall through and since we were downsizing we sold/donated much of our furnishings. This was very worrisome since we would not be able to get it back should the sale go South. Work something out to let them stay.

  • Linda
    3 years ago
    last modified: 3 years ago

    typically lawyers dont like sellers to stay in the home after closing. The legalities are complicated. What if there is a house fire, a flood, who is responisble? Years ago we had the same situation. Since it was a 2nd home for us and the seller wanted to stay, we agreed, but our lawyer said at a fee of $100 per day. The seller said, "we will agree to $900" a month. LOL.... my lawyer responded with, this is not a rental house, this is a punishment. $100 a day or get out. They got out., just a little bit of information, your bank will provide a "committment on your mortgage" which means they are committing to funding the loan. This is typically done, weeks before a closing. That should be good enough for your daughters seller.

  • Linda Doherty
    3 years ago
    last modified: 3 years ago

    Common here, but with a seller's temporary residential lease. never had any issues with it. Often do 1 mo leasebacks. rent is what the buyer's mortgage pmt is, or mkt value. Holdover charge is high to discourage overstaying. security dep is same as rent amount.

    In the event of flood/fire, buyers ins must cover, as they own home, have a temp residential lease.

  • maifleur03
    3 years ago

    Comment toward Linda Doherty since this is a very old thread and it may have been covered. Be aware that each state has their own insurance laws and within those laws insurance companies can make their own rules. In this state and probably others for the house to be covered it must be owner occupied.

  • Rob Bert
    2 years ago

    Currently sellers market. Feel like i'm paying too much for the house but i'm okay with that, not buying to make a profit and not wanting to wait indefinitely for prices to drop. With my offer accepted, liked what my hired inspector report said, so i skipped an in person due diligence walk thru and went straight to obtaining insurance and scheduling a closing date. About 3 weeks before closing i get a call from realtor informing me the seller is asking to remain in the house for an additional week after closing. I can appreciate that the sellers most likely just want to cover themselves in case i back out and i'd like to be a nice guy and give them that piece of mind, but not at the risk of losing my mind. Buying my first house after saving many many years and not taking any chances. Paying for house full with cash, made it clear to realtor the one main deal breaker for me is if the sellers don't vacate at closing...

  • Lyndee Lee
    2 years ago

    You already have many dollars and plenty cents invested in this house so don't let a small wrinkle automatically make you back out. Sure, you may be able to insist on possession at closing or no deal but uness you are actively searching for a way out of the contract, consider the idea. Ask your realtor for more details and see if you can figure out why the seller is asking for additional time. If they have a delay in getting possession of their next residence or trouble scheduling a mover, it is a reasonable request. However, if they have not yet made arrangements, be more cautious. 
    If you have to pay additional money to cover your expenses for the delay, perhaps ask for one and a half times your expected expenses in credit to closing costs. Then negotiate a security deposit and also a higher fee for going past the week. Or, request that funds be held in escrow so seller can't collect all their money until you get possession in satisfactory condition. In any case, make sure the seller has an appropriate incentive to move out within that week so this doesn't drag out. In my state, you must be resident at the new address on January 1 to claim homeowners property tax exemption fore year, or delay closing until owner moves out.

  • sushipup2
    2 years ago

    Be sure that buyer and seller both have appropriate insurance. Buyer can't have just owner-occupied insurance and seller needs to have renter's insurance.

    Example: a local home sold and closed on 8/30. The buyer let seller stay to move over the Labor Day weekend. On Friday evening, tornadoes spawned by Hurricane Ida went thru the Philadelphia area, and damaging the house and contents severely. Are you covered?

  • weedyacres
    2 years ago

    You presumably already have a contract that does NOT provide for their overstaying the closing, so you have the leverage. You don't have to say yes to make the deal happen.

    That said, you can be nice about it. I'd express my concerns to your agent, who can communicate them on. He/she can find out the reason the seller wants an extra week, and then they can all figure out a solution to eliminating that reason.

    For example, if they can't move to their new place until a week after close, then move the closing date out a week to coincide. If they don't want to move out and then have the deal fall through, then show proof of funds, and perhaps you can sign all the documents early, so they know you can't renege. Then they can pack and move out before close.

    There should be a way to accomplish your goal of possession upon close and their concerns, whatever they are.

  • mojavemaria
    2 years ago

    My son recently bought a house with an agreement that the previous owner could stay an extra month while he tried to find another place. He was willing to move into a hotel and rent storage when he still hadn't procured another arrangement despite diligently looking after the month was up. I encouraged my son to give him more time which he did and he was ultimately able to find a place to move to and my son then moved in.


    The older gentleman was very grateful and it felt good to be able to help out. I dont know your situation but if you can feel confident that they will be moving at the end of their extra week it might be a considerate thing to do.

  • morz8 - Washington Coast
    2 years ago

    Experiences seem all over the board with this old thread. My brother sold his home immediately upon listing with a quick closing date. The new construction home he was buying wasn't closing for two and a half more weeks. He did get to move in early, but the owner/contractor charged him $1500 rent.

    We bought this house from a friend, widowed, she had built a home close to where she had raised her children who were still in that area and was moving out of state. With closing looming, finding her with much to do, we offered extra time - no money involved. She declined, and managed to empty the house. It wouldn't have been an imposition to us, we were only moving a few blocks and in fact did not move in entirely and sleep here for another month after signing papers.

  • Candace
    2 years ago

    @Rob Bert - your comment about skipping the in person inspection … we purchased a 2nd home in TX and did the exact same thing - didn’t fly there to do it in person and the report looked pretty good. Inspector missed ALL KINDS of things that my husband would have caught - live wires (with no wire nuts or anything - just exposed wires) dangling from the ceiling in the attic was the most blatant one. Makes me think he didn’t even go up in the attic! Circuits were overloaded which we found out the hard way - it’s amazing the house didn’t catch fire (literally sparks were flying when the garage door was opened)… if you have any opportunity to go look for yourself before you close, please do!!