The seller is not willing to vacate the property on the day of closing.

Asked by cjigar, Torrance, CA Wed Jul 31, 2013

It was a short sale and the seller is claiming that they were not given enough time to find a rental. Now, the bank is not willing to give extend the short sale approval date. In this event, the seller is arm twisting the owner to let them stay after the closing date. Which of course the buyer is not comfortable. Even in the contract no where it is mentioned that the buyer is obligated to let them stay in the house after the day of closing. In this case if the deal fall aparts how do the buyer get the earnest money back? do the buyer still require the seller's signature to release the earnest money? Legally it is the seller who will default on the deal as they have not vacated the house and the buyers's loan is clear to close. What if the seller refused to sign the release form.

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cjigar, Home Buyer, Torrance, CA
Thu Aug 1, 2013
Thank you everyone for your answers. I really helped.
0 votes
Michael Magaw, Agent, Torrance, CA
Thu Aug 1, 2013
Cindy asked the right question - do you have a Realtor? If yes speak to him or her. If you don't trust their advice, ask to speak to their broker. If there is no agent, then find a real estate attorney.

I assume you have a binding agreement with the seller that they will sell the home to you. Time is of the essence, they can't drag their feet because they failed to find a rental. If they think they weren't given enough time to find a rental, then they can argue that with their agent, but it should not effect you.

You have invested time and money (inspections, appraisal, etc.) into this home. They can't just change their mind without suffering the consequences. You need to speak to an attorney and put some pressure on the seller. You may also want to sit down with the listing agent or the listing broker and let them know how serious this is.

To answer your question, you and the seller need to be in mutual agreement to release funds. If they do not honor the contract, then you need to know what your rights are. The language is there in the contract, but you should get an attorney to interpret it for you.
0 votes
cjigar, Home Buyer, Torrance, CA
Wed Jul 31, 2013
Let me ask one question. If seller defaults. Do the seller signature is required to release the earnest money.
0 votes
Cindy Davis, Agent, San Diego, CA
Wed Jul 31, 2013
You've got a lot of questions here....do you have a Reator? If so, that is the person you should be asking. If you did this without an agent, I honestly suggest you speak with a real estate attorney.
0 votes
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