Home Buying in La Mirada>Question Details

Amora, Home Buyer in La Mirada, CA

Short sale - occupied

Asked by Amora, La Mirada, CA Sun Jun 10, 2012

I am in the process of purchasing a short sale home and am set to close escrow at the end of this month. The seller moved out several weeks ago but I drove by the property last week and noticed it was occupied by different individuals. The selling agent mentioned the property is being occupied by the “seller’s friend”.

How should I proceed with escrow? The purchase agreement we signed in Feb 2012 specifies that the seller has to move out 3 days after close of escrow. I agreed because I thought it would be the actual seller. I’m concerned that the people now occupying the property may have a rental agreement with the seller. Whether the seller denies that there’s a lease agreement can be hearsay. If that’s the case and we close escrow we, the buyers will carry the costs associated to evicting the occupants. Should I have some sort of contingency prior to close of escrow regarding having the property empty?

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Answers

7
You should not close any home withanyone living there especially a short sale. Once you close they become your tenant and your problem. You would have to evict them if they refuse and they can cause untold damage. I cant tell you what to do but i would not buy the home unless it was vacant and i had a satisfactory walk through prior to closing.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sun Jun 10, 2012
Yep.....Red flags are up!

You should take every precaution to protect your interests and as others have mentioned DO NOT go to closing with anyone occupying the property. To do so would be to assume a huge risk and additional responsibility.

Your agent should make your concerns clear to the listing agent....

Good luck,

Bill
0 votes Thank Flag Link Sun Jun 10, 2012
Technically, the purchase agreement indicates the seller has to vacate 3 days after close of escrow. Is there still a way I can request to have the property vacant prior to walk-through or close of escrow? Thank you!
Flag Mon Jun 11, 2012
I would strongly recommend that the property be vacant prior to your walk through. If it is not vacant, I would not fund and close.
Good luck,
0 votes Thank Flag Link Sun Jun 10, 2012
Technically, the purchase agreement indicates the seller has to vacate 3 days after close of escrow. Is there still a way I can request to have the property vacant prior to walk-through or close or escrow? Thank you!
Flag Sun Jun 10, 2012
It sounds llike you do have a contract...that the sellers be out 3 days after clkose. Honestly, it is still their property so I don't think there's anything you can do until that point. What does your Realtor say?

It might be a good idea to document all of this...have your Realtor contact the listing agent and ask for a written statement about when the 'friend' will be out.
0 votes Thank Flag Link Sun Jun 10, 2012
Sue, they are not trespassing if the owner said they could be there and it is not the new owners house until they close on it and I would not close until they are gone. The buyer can not make demands on a property they don't yet own.
0 votes Thank Flag Link Sun Jun 10, 2012
I would not close it until it is empty. If the agreement said the "seller" had to be out and that is not the seller then you should be ok, but it could still be an argument. I, personally, would never close on a property with anyone in it still and I get my clients to do the same.
0 votes Thank Flag Link Sun Jun 10, 2012
Technically, am I allowed to deny closing until it is empty even though the purchase agreement we originally signed indicates the seller is to vacate 3 days after COE?
Flag Sun Jun 10, 2012
I would knock on the door, and ask the "friends" if they have a rental agreement in place with the seller.
If yes, demand to see it. If no, then call the sheriff for illegal trespass. Let them know they can be prosecuted for illegal trespass.
0 votes Thank Flag Link Sun Jun 10, 2012
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