â€œâ€¦close of escrow plus 3 daysâ€¦â€ most likely means the Seller needs/wants additional time to vacate the property. While normally just a simple request to have more time to move, there are potential risks and considerations that must be weighed by the Buyer. My understanding is that allowing a Seller to occupy the property after the original possession date creates tenancy rights. As such, issues common with rental property comes into play.
Everyone has a different level of personal risk aversion. Personally, if I were in your shoes, I would want all of the following terms understood by both parties, located on a single page, and agreed to before moving forward:
1) The exact terms of possession
3) Late charges
4) Responsibility for utilities
5) Entry rights
6) Responsibility for maintenance
8) Responsibility for insurance
9) Any other special terms deemed necessary.
Section two of CAR Form Purchase Agreement Addendum (PAA, Revised 4/08) was created to address the considerations above when possession is delayed. I would highly recommend you cover section two with your RealtorÂ® to decide whether its use might be appropriate in your situation.
It means that the sellers has asked to stay in the house 3 days after the escrow has closed,this is typical for many sellers in today's market ,that way the sellers make sure that the house has closed then they move out .Good Luck !
It is common. The only issue that may come up is liability insurance and that can be remedied easy enough.
You can use a Purchase Agreement Addendum which will lay out clearly the amount of days and at what price if any. It also will allow for proceeds to be held in escrow until the Seller successfully fulfills his obligation to move.
Once you purchase the home it is yours to carry the proper insurance to cover any liability situation.
So it is on the buyer to make sure you have proper coverage. No differnet than if you going to rent the home. consult a licensed Insurance agent for specifics in your city and state.
All of my fellow Realtors are right on the money with their answers. There can be a number of reasons why the seller would need the additional 3 days to vacate the premises but when all is said and done, I would say that's a deal breaker solely on the fact that there is to much liability that simply is not worth the risk for you. There are forms that can protect your interest, but what good would they be if the home burns down in a fire? You can easily see just the thought of that would make you reconsider strongly negotiating the additional 3 days. Good luck.
That just basically means your seller wants 3 days to hAnd over the keys after the close of escrow. It allows the seller to have a little bit more time to iron out they're moving process.
Some sellers move out and hand over possession at the close but it is quite common where the seller may need more time to move out this why they will ask for more days after the close of escrow to hand over the keys.
I hope this helps
Real estate guide
Robert pitts estates
The plus 3 days simply means the seller wants to close the deal (get their money) and then you give 3 days before they have to hand over keys. Which means, 3 days of you paying principal and interest on a home you can move in to.
We are seeing this more with short sale transactions. Particularly homes that have tenants. However, go over the numbers with your loan officer and know what the cost is for you.