The seller wants to stay in the house after closing until he finds new home.

Asked by Anita, Staunton, VA Thu Aug 15, 2013

What are my options to insure that this will not take forever?
Thank you.

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7
My NC Homes…, Agent, Chapel Hill, NC
Fri Aug 16, 2013
To begin with you must take possession of the property within 60 days of the closing date, failing to move in within this time frame constitutes mortgage fraud assuming you're getting a primary home loan (as opposed to a investment loan) Admittedly there aren't any mortgage police per se, but I doubt your attorney would advise otherwise.

Personally while this does happen I don't like it and if possible would suggest not getting involved with this. The Seller listed their home for sale with the intent of selling it, they should have thought things through and if they needed to buy another home they should have been actively looking so that they were prepared to put a home under contract. Were I you agent I'd suggest you limit them to no more than 14 days after closing, for which you should be reimbursed exactly what it's costing you to carry the home during this time. Otherwise I'd either suggest terminating your offer (which may get the seller to realize what they want isn't likely to happen and they can go rent and figure it out as it's their problem and not yours), or postpone your closing.

Speak with your agent and your attorney and see what they suggest. As Bill Eckler wrote, this has the potential to become a sticky situation and if possible it's best to avoid it if at all possible
0 votes
Annette Law…, Agent, Palm Harbor, FL
Fri Aug 16, 2013
Anita,
You are right to be concerned.
If this seller has a million dollar vision and a ten dollar budget, you may have a permanate resident.
Most professionals would recommend the house be empty, unoccupied on the day of closing. Violating this advise sets you up for a situation that can cause you great harm.
-
GET a BIG DEPOSIT. This will fund the eviction is needed
Impose a escalating, punitive daily rental rate.
Buy a lottery ticket. If you get out of this unharmed, it will be your lucky day!

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
Serious people call!
Serious people need reliable data.
0 votes
Christopher…, Agent, Tarrytown, NY
Fri Aug 16, 2013
You can have your attorney propose a "post possession" agreement where the seller would stay in the home for a pre-determined and mutually agreed upon number of days. You can also work renting it back in tot he agreement as well, which you should.

Chris
0 votes
Bill Eckler, Agent, Venice, FL
Fri Aug 16, 2013
Hi Anita,

The reality is unless you take measures to protect yourself, there are no guarantees.

This arrangement can get very "sticky".....Before giving this serious consideration we would recommend that you consult with an attorney. What sounds like a simple arrangement has the potential of becoming a nightmare....

Bill
0 votes
Lori Jeltema, Agent, Suffolk, VA
Fri Aug 16, 2013
Your agent will help you set that up. You have per and post closing walk thrus, deposit, per diem and rent back terms and a clear contra t showing who is responsible for utilities, maintenance, appliance care, etc.
0 votes
, ,
Thu Aug 15, 2013
Define it in the purchase agreement and specify that he pay rent during this time so he has an incentive to move. FYI, depending on the type of mortgage you are trying to get, the guidelines will require you to take occupancy within 60-90 days, so make sure you hash this out in advance
0 votes
Thomas Moser, Agent, East Northport, NY
Thu Aug 15, 2013
I would not allow them to stay indefinately. It should be for a defined maximum period of time. It should be written into the purchase contract and a substantial amount of the sales price should be held in escrow. In addition, there should be a set daily price that they have to pay that escalates as time goes on.
0 votes
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