Home Buying in San Diego>Question Details

Timmieng, Home Buyer in Los Angeles, CA

Contract states close of escrow plus 3 days. What happens if seller does not move out on time? Can lender/escrow hold fees until they move out?

Asked by Timmieng, Los Angeles, CA Wed Oct 19, 2011

Does escrow close after they move out? How do I set the per diem rate? What if seller doesn't agree to sign any agreement and escrow has already closed?

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4
dan tabit is on the money with his answer
1 vote Thank Flag Link Fri Dec 9, 2011
Timmieng,
Closing plus 3 days is not uncommon and can be for a number of reasons, moving is the most common. Recording of the deed typically happens on closing.
I would want to know that the seller's are packing and lined up for their next home. If all indications point that way, I wouldn't panic. If this is a short sale you may have a concern and want to discuss changing the terms to vacate prior to closing. Distressed sellers have often been living rent/mortgage free for a number of months. There is no reason they need to wait for the home to close to move out.
In the case of a conventional seller, they may be waiting for the proceeds of the sale to close on their next purchase. Most sellers will not allow someone to move in prior to closing, so they wait until both sales are closed and then move. If they need the proceeds to purchase the next home, then asking escrow to hold them would aggravate the problem, not solve it.
Have your agent investigate the seller’s plans and make certain they are preparing the home to move out.
0 votes Thank Flag Link Wed Oct 19, 2011
close of escrow plus 3 days is for the purpose of recording Deed, nothing to do with property being vacated by seller. if escrow has already closed then you have to go through the eviction process. Your agent didn't serve you well if this is the case.

if escrow has not been closed then don't wire the money, don't sign any thing ...
0 votes Thank Flag Link Wed Oct 19, 2011
Typically an escrow is set up at the title company and is released to the purchaser upon the seller moving out. This is something you want to make sure you set up if you are worried at all that the seller may not move out. The lender will typically will not do a holdback for a moveout.
0 votes Thank Flag Link Wed Oct 19, 2011
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