Home Buying in Portland>Question Details

Mel, Home Buyer in Oregon

Seller doesn't think we can close

Asked by Mel, Oregon Fri Jun 22, 2012

Any advice would be appreciated! My husband and I are in the final stages of closing on a home in NW Portland. We are having trouble with the seller or maybe the selling agent (?), who are indicating that they don't think we can close the deal. They initially wanted for us to close on the house, and take possession two days later (without charging any PITI), all because they didn't want to move out, and then move back in if we couldn't get the loan. We said NO. We now have a fully approved loan , and are in position to deliver funds by the targeted closing date, yet the sellers are still are dragging their feet. They now asked for a letter from our bank proving we are funded, which we provided, but still want to give us possession on the Monday after our closing date. My husband and I are both employed doctors, with a 20% down payment, and no house to have to sell, and don't understand just what is going on. How common is this, and do we have any power here?

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P.S. You wrote: "As first time home buyers, we're not so sure we picked the right people to be buying a house from."

Picking the right people to buy a home from?!? You're buying a home that you wanted to purchase and call home. The home has nothing to do with this and is still the same property you liked enough to enter into a purchase agreement. But, what does have something to do with it is . . . who the heck is representing you?!? God forbid you're in a "disclosed limited agency" relationship. HA HA HA

That'll learn ya.

My deals have NEVER been sloppy and I hope to all that's Holy my clients would never even have to post this type of thing on a message board desperately seeking some advice. For that, I do feel bad for you.
0 votes Thank Flag Link Sat Jun 23, 2012
I'm surprised that there are agents who are actually responding to this. I'm sorry, but you are in a legally binding contract which NO ONE on this message board is privy to. PLUS we are not representing you and/or your husband. We are not supposed to give legal advice since we are not licensed to practice law, and since you're in a contract -- which is legal and binding -- the only people who should be responsible to answer your questions are your agent, their managing broker, and/or a real estate attorney.

The terms and conditions of your purchase agreement are being discussed by licensed real estate agents in the State of Oregon while it's still in play is absolutely unbelievable to me.

Of course, that's how I practice real estate and I'm sure I'll be looked at as nuts for expressing my view, but come on agents. Do you really like to interfere with a purchase contract?!?



NOTICE: Any advice provided by EBA Portland, LLC is based on the local standards and practice of the Portland Metro area and does not construe representation or the attempt to interfere in a business relationship and/or contract.

EBA Portland, LLC has no knowledge of a legal agency relationship established and it is not the intent of EBA Portland, LLC to provide a second opinion for represented clients in a real estate transaction.
0 votes Thank Flag Link Sat Jun 23, 2012
With the caveat of reminding you I haven't seen your contract, I might recommend you not respond or react to any histrionics. If you have to extend closing, that's probably not a big deal. If the buyer wants to live there a couple days after closing, he can and should pay. Again you have a signed contract. Try to stay calm...and quiet...and let the other side present an addendum in writing. Good luck to you.
0 votes Thank Flag Link Fri Jun 22, 2012
Thank you so much for all of your advice. We feel like we are getting bullied! Our contract says we will close and get possession on the same day. The contract also states that we will fund escrow 7 days before closing. The sellers took about a week after accepting our offer- going back and forth with us with this possession/closing issue. When the final addendum was signed, it left us about 2 weeks to get a loan from the bank and fund in the original "funding date" specified by the sellers. Our bank was awesome and will provide us with the money in about 3 weeks, which is precisely around our original closing date. So basically, we can't get the money by the "7 days before closing" like they wanted, but we also never stated in the contract that they could live there past closing. We have passed underwriting, and the appraisal has gone through underwriting. Our bank provided in writing that we would get the loan, but these people still don't believe it, apparently. We are so frustrated. As first time home buyers, we're not so sure we picked the right people to be buying a house from.
0 votes Thank Flag Link Fri Jun 22, 2012
Sounds like the other side is attempting to bully you. I had a transaction recently where the other side constantly talked about imminent disaster. We decided simply to ignore it and, magically, everything worked out just fine. What does your contract say regarding possession after closing? That's what counts. The other side is contractually bound to do what they said they'd do in the sales agreement. I might agree in an addendum to extending the closing date but I wouldn't agree to alter the possession after closing terms without compensation. Your best option might be to ignore the scare tactics. Ultimately the terms of your sales agreement should prevail, irrespective of whining and threatening.
0 votes Thank Flag Link Fri Jun 22, 2012
Hi Mel,

Buyers getting loans to fund a house purchase and sellers moving out on day of closing takes place daily, so what makes yours different. Not knowing all the facts it is hard to say and if you are at this point in the transaction there should have been no surprises.
Like others have said get your agent finding out what is going on, elevate the problem to the managing brokers.

Kevin Sucher
Principal Broker
503-214-4139
0 votes Thank Flag Link Fri Jun 22, 2012
Dear Frustrated Home Buyer,

It's extremely hard for me to answer all question confidently without reviewing your sales contract. Do you have representation? Your broker should be working on this for you.

If you are still in contract and not closing late and if you are closing late, you will need to obtain a closing extension. In this situation, you want to stay in contract especially when dealing with a difficult seller. If you are in contract, yes the seller has to sell!! It's called "specific performance" and you will want to contact a real estate attorney if the seller doesn't sell.

What the contract states is the date you are entitled to the property by law. Once closed on the closing date the deed will be recorded at the county with your names and you will be the legal owners of the property. If the sellers are unwilling to move, you can all the police for extra enforcement.

But would recommend not being too difficult. Unfortunately, you are dealing with seller that is unreasonable. BUT if they need 2 days to get out and you have the house FOREVER after that, then what is 2 days in the gram scheme of things....Big picture.
0 votes Thank Flag Link Fri Jun 22, 2012
There are so many possible issues here that I'd have to look at your contract (you have one, right?) to know what your rights are. Where is your agent (you have one, right?)?! He or she should be all over this situation, and be able to answer these questions for you right away. Also, ask the title company (the ones who are holding the escrow for this transacton) what's going on.
0 votes Thank Flag Link Fri Jun 22, 2012
As long as the appraisal is complete, at value, and w/no conditions, and you are past standard contingencies - you should be good to go. Find out when loan docs are due to escrow - once the seller signs they are obligated to be out on the contractural closing date.
0 votes Thank Flag Link Fri Jun 22, 2012
Mel: the way the original offer or counter-offer were written and accepted by all parties to the transaction should dictate the closing, the possession and the pro-ration of the closing cost attributed to the sale. If the seller stipulated that they required possession after closing - and you agreed at the time of acceptance, they would be correct in now asking to stay. If that was not discussed and agreed to by all parties, in writing, you should contact your agent and ask them to contact the Principal Managing Broker of the seller, to intervene in this issue. The delayed possession after closing is a common practice in some states where closing is handled by attorneys and not the Title companies - and is sometimes used as a negotiation tool when offering a lower price than the list price of a property but, again, it must be agreed to at the time of offer acceptance. I hope that this helps and you are able to find a common understanding and close on your purchase. Regards, Mike
0 votes Thank Flag Link Fri Jun 22, 2012
HI Mel,

This is very common especially in today's market and deals falling apart literally the day of closing. Understandably, seller's want the loan funded and recorded before vacating. Underwriters are being very particular before they release funds for recording and are coming up with conditions at the last minute we have never seen. I actually just negotiated this same item this morning. Your broker if you have one should be negotiating this process for you. Hope this helps and good luck!

Best regards,

Diana Primrose
Principal Broker, TRC
Keller Williams Realty Professionals
503-780-4500
"My Service Begins with Knowing Your Needs"
dianashomes4u@gmail.com
http://dianashomes4u.YourKWagent.com
0 votes Thank Flag Link Fri Jun 22, 2012
Mel: the way the original offer or counter-offer were written and accepted by all parties to the transaction should dictate the closing, the possession and the pro-ration of the closing cost attributed to the sale. If the seller stipulated that they required possession after closing - and you agreed at the time of acceptance, they would be correct in now asking to stay. If that was not discussed and agreed to by all parties, in writing, you should contact your agent and ask them to contact the Principal Managing Broker of the seller, to intervene in this issue. The delayed possession after closing is a common practice in some states where closing is handled by attorneys and not the Title companies - and is sometimes used as a negotiation tool when offering a lower price than the list price of a property but, again, it must be agreed to at the time of offer acceptance. I hope that this helps and you are able to find a common understanding and close on your purchase. Regards, Mike
0 votes Thank Flag Link Fri Jun 22, 2012
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