Moving in After Closing
The papers have been signed for you to move into your new home, you are anxious to move in on the agreed date, and everything is on track to go off smoothly. At least that’s the way it’s supposed to work. In some cases, though, a seller will ask to stay in the home for a length of time after closing. You have the prerogative to approve or disapprove the buyer’s request, but before you make that decision, here are some important considerations.
Requests for Delay
Sometimes, in the final few days of hurried activity just prior to contract closing, the seller might ask the buyer for time to vacate the home, or to take care of other issues on the move. While the request may seem to be perfectly reasonable, you must proceed carefully. If the buyer concedes to allow the request for extension, they should be made to pay rent for the additional time, and that part of the transaction has to be firmly written in an agreement.
There must be a limit on the time the seller can stay in the property, and it needs to be in writing. An agreement between the seller and buyer containing the specifics of the after-closing possession benefiting the seller can be provided by the attorney.
The seller may attempt to pressure you by giving you no time. If the seller announces at closing that he or she needs to stay longer, it is usually a good idea to put off closing on the home until such time as the seller can move out or acceptable agreement has been drawn up and agreed upon.
Why is Seller Possession Following Closing a Big Deal?
Once you buy a property, that property belongs to you and it is your responsibility. If your tenant starts a fire on the property that burns down the house, it is your problem because you are the owner. The renter/seller will have no accountability for the damage unless it is clearly spelled out in the agreement, and even in that event the seller’s liability is likely be governed by applicable law.
Sellers who retain possession of the real estate after closing have less motivation to clean up the property. When closing on real estate, you accept it in the condition in which it stands at the time of closing.
Liability
Anything that occurs after the contract closing is the responsibility of the buyer, not the seller. So if a door gets kicked in or a window gets broken, you are the one that will end up paying for the full cost of the repair.
Another common problem with letting the seller keep possession of the home after the closing date is that items that should remain with the home can disappear between closing and final possession. Even when this happens, and it does all too often, the owner of the property is the one who bears the loss.
When you are the homeowner, you will expect to have full control of your own home. This premise is easy to comprehend when you are deciding whether to answer the doorbell and admit a good friend, and it is no less the case when you are asked to approve delayed possession in those final hectic days of the purchase transaction. You have to stand up for your considerable investment.
If you need more information about the San Francisco Market contact James Aduna 415.901.2797 or jaduna@ubayp.com
Content provided through Automated Homefinder, the ultimate Colorado home specialists.
(03-19) 11:08 PDT SAN FRANCISCO — Bay Area median home prices crossed below the $300,000 threshold for the first time this century, as the one-two punch of foreclosures and tight credit continue to batter the market, according to a February housing report released Thursday.
