Home Buying in Los Angeles>Question Details

Barretts08, Home Buyer in Riverside, CA

Buying a short sale where owner has 3 days after close to move out.

Asked by Barretts08, Riverside, CA Fri Dec 28, 2012

This is my first time buying a house and if I would have known better I would have done differently, however- this is my current situation. We are buying a shortsale that is hopefully closing today. The owner does not live there, but someother people do. I do not believe that they have a lease agreement, but we did agree in the contract to give them 3 days to move out after close of escrow. If we close today, when are the 3 days up? Also, I don't think they will be out in 3 days. The selling realtor has said that they have no one to help them and no other place lined up (not my problem). He has told us it will be about a week. The contact addendum did not specify a per diem rent charge. I really just want them out, but can I charge them for the days over 3? Is it worth it to get a lawyer, or should I just wait and hope that they will be out next week (realtor has "promised" they will be)

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Don't close until they they are out! Otherwise you have a Tenant. If they do not leave willingly in the time frame, you will have to go through the eviction process which can take many, many, many months./
1 vote Thank Flag Link Fri Dec 28, 2012
This is where it matters to have a very smart agent representing you.
just two lines added into your contract would have helped you so much.
I hope some other agents read this.
There is no reason to allow the sellers of a short sale to stay in the property til the end of escrow.
It is wise to have sellers move out PRIOR to signing loan docs.

After your three days, you can contact an eviction attorney.

Harold Sharpe - Broker
So Cal Homes
(951) 821-8211
harold@homes-riverside.com
http://www.homes-riverside.com
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Tue Jan 1, 2013
Since you agreed to 3 days after close, it doesn't make sense to uphold close of escrow--that simply delays your right to take action. First, are you sure they know about the 3 day clause? Are they planning on moving at all? As any form of tenant, they likely have rights. Best to amicably, and as quickly as possible, assist them in getting out, if possible. This may involve your renting a truck and some assistance, maybe some payout, but consider those expenses against hiring a lawyer and waiting to legally evict.
0 votes Thank Flag Link Fri Dec 28, 2012
Situations like this are very difficult... occupants have rights, whether they are owners or tenants...

It is in your best interest to proceed cordially and friendly... treat them, like YOU would like to be treated if you were in their place. On the other hand, don't take their word for anything.. be cautious they may end up giving you stories for a month and the it will take you two more to evict them if it gets to that...

I would hire a professional to do the work for you... We negotiate Cash for Keys for our buyers and sellers all the time... sometimes they involve evictions but most of the time they involve only respectful, tactful and dignified negotiations... below is a link to a blog post I wrote on cash for keys...


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0 votes Thank Flag Link Fri Dec 28, 2012
Yes, call a lawyer. No, do not close if at all possible. Don't believe the Listing Agent, he is telling you what you want to hear to get his commission. What is your agent doing?
0 votes Thank Flag Link Fri Dec 28, 2012
The problem with not closing is that our short sale approval expires tomorrow. So if we threaten to not close we a risking to lose the house.
Flag Fri Dec 28, 2012
The 3 days would be calendar days, so if you close today, day #3 would be on Monday (the 31st). And technically, they'd have until 11:59pm. Happy New Year! :)

My suspicion, although I obviously don't know for sure, is that the listing agent and/or seller hasn't communicated clearly with the tenants about the conditions of the contract, and as a result, they may not have had ample warning (and may not have agreed to) about their 3-day deadline. Also, if there's no mention of a per diem in the contract addendum, then you can't expect them to start paying you one starting on the 1st.

Given all of this, my suggestion would be to talk with the tenants when the deal closes (when you've become their landlord) and do your best to work something out with them. Be reasonable, not combative, and hopefully you'll be able to come to an resolution. If they dig their heals in and refuse to move out, you might have to offer them a relocation fee. I would also make sure that you're familiar with any rent control issues in effect.

I hope this helps. Please don't hesitate to give me a call if you'd like to talk in more detail. Good luck!

Marty Walker
324.559.5823
marty.walker@exprealty.com
0 votes Thank Flag Link Fri Dec 28, 2012
The 3 days would be calendar days, so if you close today, day #3 would be on Monday (the 31st). And technically, they'd have until 11:59pm. Happy New Year! :)

My suspicion, although I obviously don't know for sure, is that the listing agent and/or seller hasn't communicated clearly with the tenants about the conditions of the contract, and as a result, they may not have had ample warning (and may not have agreed to) about their 3-day deadline. Also, if there's no mention of a per diem in the contract addendum, then you can't expect them to start paying you one starting on the 1st.

Given all of this, my suggestion would be to talk with the tenants when the deal closes (when you've become their landlord) and do your best to work something out with them. Be reasonable, not combative, and hopefully you'll be able to come to an resolution. If they dig their heals in and refuse to move out, you might have to offer them a relocation fee. I would also make sure that you're familiar with any rent control issues in effect.

I hope this helps. Please don't hesitate to give me a call if you'd like to talk in more detail. Good luck!

Marty Walker
324.559.5823
marty.walker@exprealty.com
0 votes Thank Flag Link Fri Dec 28, 2012
Congratulations on your purchase. This would mean 3 days from the time you record (calendar days). If you record today, Monday would be the last day. If they stay longer than 3 days, you need to start an eviction process. You can ask them to pay you rent per Diem, but if they don't agree, it will take a while for you to evict them anyways. If they are gone in a week, you'll be lucky not to have spent money on eviction. I would start doing research on who will help you evict with the cheapest program (some courts even have self-help sections). But if they leave in a week, that's good on it's own. Just bug them every day. If not, do some research. Here's a link you can use. http://courts.ca.gov/selfhelp-eviction.htm

Good luck, and don't let these few days bug you. It's the Holiday season, try to enjoy it the best you can.

Sincerely,
Caroline Harabedian
Realtor
RE-Search Concept
8700 Reseda Blvd., Suite 213-B
Northridge, California 91324
(818) 967-9626 mobile
(818) 979-0226 fax
http://www.HomesByCaroline.net
0 votes Thank Flag Link Fri Dec 28, 2012
Are you angry at the Tenants for having no place to live?
Or are you angry at yourself for your lack of research?

According to the Tenants Rights Act of 2009; the tenants have the RIGHT to stay there for 30 days:
Look it up.
"NOT MY PROBLEM"; yes, it is your problem; from both a Legal aspect, and a Moral one!

Here's a solution; give them $1500 to move in two weeks: It will be cheaper for you, and it will help your conscience too.
0 votes Thank Flag Link Fri Dec 28, 2012
I was told that since they do not have a lease that they do not have a right to stay. That they must be out at the 3 days. Somehow the listing agent is related to the people living there (either boyfriend or brother or somthing) and he has asured us that they will move out. I have just been waiting for my house since August and I want them out in agreement with the contract that was agreed to. They have know that dec 28th was the closing date since thanksgiving. That is why I am saying it is not my problem that they did ot plan accordingly.
Flag Fri Dec 28, 2012
In the standard California purchase contracts, 3 days starts when you have confirmation that the deed has recorded, which if you're closing today it will be approx. 5pm, so they should move out no later than 5pm on Monday..

Beyond Monday at 5pm, you tell them now that you will call the Sheriff to remove them OR THEY need to insert funds into an escrow account which your current escrow co. could set up right now for a week worth of Per Diem which you need to figure out what that is right now & DO a lease agreement for 1 week & have them sign it. Put a clause in the lease agrmt citing this is just for 1 week & there is no implied tenancy beyond this time frame & this is not a 30 day rental period.

If you just let them stay on their word for a week, then that turns into 10 days & soon you're going to run into "implied tenancy" issues for which they could argue you have to give them 30-90 days notice to move. I'm not an attorney but California tenancy laws protecting what could be considered as "a tenant" are tricky. You should call a Real Estate Attorney & give them this scenario.

Whatever they're going to end up paying you for a 'per diem' is going to be darn close to what they'd pay at a motel, which is where they should go until they can figure out what they're going to do.

Shoot me an email directly if you'd like to talk about this further, I don't look back on this same Trulia thread for answers posted after mine.

Emily S. Knell
EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Realty ONE Group
Short Sale Specialist - 100% success rate
0 votes Thank Flag Link Fri Dec 28, 2012
Barretts08 -

Hopefully they moved out. Just wait the 3 calendar days that you agreed. Be prepare to give them an eviction notice after the 3 days. Ask your agent for help and for an eviction attorney reference or just check the link below. An eviction attorney knows the laws in that specific city.

Good luck.

Reference info: http://evict123.com
0 votes Thank Flag Link Fri Dec 28, 2012
If you close escrow with tenants in the home you will become landlords. If they do not move out you will have to go through the eviction process which could take months.
Good luck,
0 votes Thank Flag Link Fri Dec 28, 2012
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