How Long Should Owners Be Allowed To Stay After closing?

Asked by Whatdidido, Cuyahoga County, OH Tue Jul 3, 2012

Almost at clear to close and we needed to update our purchase agreement since it took so long for this FHA 203k to be approved by AFR, we are awaiting a clear to close after submitting more docements for my contractor. Anyway we have a tentative closing date of July 13 so we needed the owners to sign a walk thru and a new closing date with possession the next day. Now they are saying that they need a week more after closing to move out. Now my name will be legally on that house and its on the homeowners insurance that is required at closing. What if ANY is a reasonable amount of time to have them move out. They have had from April to present to make alternate plans at closing. The already found a house so I don't know why another seven days . Thanks

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Mark's Of Ex…, Agent, Chagrin Falls, OH
Mon Feb 16, 2015
We typically allow 3-5 days free, after that we can always ask for a per diem.
0 votes
Darrell D. D…, Agent, Schertz, TX
Wed Jul 4, 2012
As already stated, if your contract identified possession transfer at closing and funding, which is the norm, then after all is signed and funds are released by the lender....it is yours. The only way the previous owners would be allowed to stay was if you both agreed to a lease-back which is negotiated in advance for them to pay upfront rent - since you would be their landlord.

Another issue of concern is the 203k.....if you are going to have contractors door the required repairs timely, they may be limited in starting with someone else living there. I would definitely discuss the situation and options with your agent. Good Luck!
0 votes
David M. Chi…, Agent, Uniontown, OH
Wed Jul 4, 2012
It should have been stated on your contract. There is a clause that states the date of closing and the date for possession. Normally, the home is the buyers the day it is filed in court and the sellers are usually gone by then. If you agree to wait another week, you may charge them rent as it is your home when it is filed. I had a case of sellers not leaving on time once and my buyer actually called the sheriff's office to have them removed as trespassers!! YOU are in charge as the owner of the home when it files.......good luck!
Web Reference:  http://www.liveinakron.com
0 votes
James Ryan, Mortgage Broker Or Lender, Leesburg, VA
Tue Jul 3, 2012
FHA in general, and FHA 203K in particular are very leery of rent backs by the sellers. I would broach this with your loan officer as well as your agent. It's nice to see AFR might really close a loan!

Insider joke, sorry!

Best wishes, Jim
0 votes
I figured as much since I am to sign an Affidavit Of Occupancy saying that I live there , as far as the AFR I am sure that I wanted to know the insider joke efore i started dealing with them. Had my bank warned me that they would be handling this part of the loan (rehab) and they have a track record of taking their time I wuld not have done this type of loan. You don't take your time with buyers that have a almost 800 credit score, many years at my job plus a contractor that is 203k certified and just hold their loan up because you can. Thanks for the info
Flag Tue Jul 3, 2012
Dan Tabit, Agent, Issaquah, WA
Tue Jul 3, 2012
Whadidido,
This should have been addressed in the original purchase & sale. Once the home closes and the previous owners are in it, you become their landlord and they become your tenant. I encourage you to discuss this at length with your agent and go over the possible outcomes of this. I also encourage that if you agree to one week; you have a rent back agreement and consider collecting rent in an amount at least equal to your daily carrying costs.
If you don't see evidence that they are actually packing and preparing to move, you might not want to close until they are out. Evictions can take months and are expensive. Your only protection is what you set up now while you have options.
There are too many options for a site like this to give you a full picture, please discuss this with your agent, their managing broker and if necessary an attorney.
0 votes
Thank you very much :)
Flag Tue Jul 3, 2012
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