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  1. #1
    Join Date
    Jun 2005
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    100

    Default Possession at Closing?

    Did you take possession at closing? Apart from any special circumstances, why would you not take possession at closing? I haven't run into this issue before, because the first house I bought was vacant and it wasn't an issue. When we sold the house, we moved out a week before closing. We're now buying again and when we went to sign the offer we noticed that the realtor had said that we would take possession two days after closing. I asked her about this and she said that a lot of people would like the extra time to get everything moved out. If they would like the extra time, then we'll push closing back a week, but we're adamant about taking possession at closing. I'm just wondering how common this is.

  2. #2
    Join Date
    Jun 2005
    Location
    Michigan
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    2,515

    Default

    My understanding is that its very common. Usually the owner of the house has 30 days to get out of the house, but they have to pay you 'rent' for every day they stay past closing. Maybe the seller isn't closing on their new house until the day before your closing so they do actually need that time to get everything out since they just gained access to the new house. When we bought our house, the sellers stayed in the house for a day after closing because of that reason. A lot of people try to have their buying and selling closings on the same day, they would definitely need time after close to get their stuff out.
    DS: 11-20-2006
    Boy/Girl Twins: 4-3-2011
    DD 4/3/2013

  3. #3
    Join Date
    Jul 2005
    Location
    FL
    Posts
    81

    Default

    When my mom bought her house, the sellers asked to have 3 days to move out and clean after closing. The sellers were required to pay my Mom "rent" for those 3 days.
    ~Sabre
    Isabella 3-17-03
    Anthony 9-10-05

  4. #4
    Join Date
    Jun 2005
    Location
    NoVa
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    Default

    why would you not take possession at closing?
    If they would like the extra time, then we'll push closing back a week, but we're adamant about taking possession at closing.
    I think this is very common.

    When we sold our TH, we included 2 weeks of buyer-funded "rent back" in our contract. So we kept living in the TH after closing to give us time to take care of things at our new place and move. The second to last day of the rent-back I had a cleaning service come in and clean everything. The new owners did a walkthrough at the end of the rent-back period to determine if the house was in proper condition.

    One final thought. Not everyone can schedule closings for a sale and a purchase on the same day. If you need funds from the sale in order to make your purchase, you need to make the sale first. But - if the purchase closing isn't the same day, where are you going to go? In my recent experience, it was actually lucky for me that I didn't try to have both scheduled on the same day since there was a problem with the buyer's downpayment check (for their loan) that caused me to not receive the proceeds from the sale until 2 days later. Luckily, the closing on my new house wasn't until 3 days after AND we had the rent-back as a cushion.

    Unless you really mistrust the sellers, I think it's pretty inflexible of you to "insist" on taking posession.
    Cake or Death?

  5. #5
    Join Date
    Jun 2005
    Location
    Chicago
    Posts
    616

    Default

    Different perspective....we would NEVER allow the sellers to remain in the home after the closing. Too many problems can happen. What if they damage something? They are technically renting from you at that point and you are the landlord. What if they won't move? Seriously, it happens. Then you have to evict them. Any idea how long that can take?

    Around here it is not very common and possession happens at the closing. If they need to move the closing out a few days fine but I wouldn't close on a house where the sellers would remain. Uh-uh, no way, not gonna happen.

    Signed,
    The wife of a real estate attorney

  6. #6
    Join Date
    Jul 2005
    Location
    Maine
    Posts
    772

    Default

    We took possession of our home a month after closing. It was stipulated in our contract that if the sellers were not out of the house at closing, they would have to pay rent of $X. About 2 weeks before closing, the sellers contacted us (we did FSBO) and asked if they could have the extra month since their house they were building did not have power to it yet. They still needed to close on time because they had a lot of contractor bills they needed to pay.

    We closed in Nov. and moved in Dec. It worked out fine since we had our apartment until the end of Dec anyway. We were glad we were able to help them.

    If you do a rent-back, make sure you contact your insurance company to be sure you have your bases covered.

  7. #7
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    Default

    You can't take possession until your loan has funded. Our loan was funded before we even signed the papers, so had it not been in our contract that the seller had 24 hours to remain in the house after closing, we would have had possession right away. We did have keys right away, but we agreed not to go in.

    Our sellers wanted that time to finish moving out and to hire a cleaning person to come in. I have no idea what their cleaning person did because the house wasn't clean, but whatever.

    It was also in our contract that if anything in the home was damaged between the time we last saw the house (which was a week prior to closing when we measured for floors) and the time we first saw the house post-closing, the seller would be responsible. Nothing was damaged, but they did leave a crapload of trash in the attic despite requests and reminders that they clean the attic out. That was their way of getting even with us because we wouldn't rent-back to them for a few extra months.

  8. #8
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    Jul 2005
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    Maine
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    What if they damage something? They are technically renting from you at that point and you are the landlord. What if they won't move?
    Our contract stipulated that we have a walk through before closing and then another one before possession and that the sellers would be responsible for any damages. If the sellers were not out of the house in 30 days after closing, rent doubled and would continue to double every 30 days.

  9. #9
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    Quote Originally Posted by MsPeachy
    But - if the purchase closing isn't the same day, where are you going to go?
    In our case, we (as the buyer) didn't care where the seller went. We knew our lease was up in June and we had to be out, so they needed to be out after their 24 hours so we could get in and start fixing up the place. They ended up staying with family until their house was finished being built.

    Now that we're the seller and we're also building, we'll ask if we can rent back but we aren't going to hold our breaths. We'll find an extended stay hotel that accepts pets and live there for awhile if we need to. It isn't the buyer's responsibility to ensure we have housing.

    ***

    In my neighborhood, a few months after we bought our house another house sold. It was a tricky situation because it was co-owned by a homosexual couple going through a very nasty breakup. One woman left the house, but the other refused to leave. She holed up in the house for a few weeks and finally the new owners had law enforcement come out to evict her because they had never agreed to rent-back...the woman was just squatting.
    Last edited by lml41981; 09-27-2005 at 07:33 AM.

  10. #10
    Join Date
    Jun 2005
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    NoVa
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    Default

    It isn't the buyer's responsibility to ensure we have housing.
    This is true. The point I was trying to make was that allowing a few days of rent-back (or more) allows for some cushion in case a problem arises.


    In our area, it's a seller's market. We could pretty much dictate whatever terms we wanted when selling our TH since buyers know that if they don't accept, we have many others who would be more than happy to accept our terms. It's that hot and people are that desperate to get places.
    Cake or Death?

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