Sellers Possesion 2 Days After Closing (sales, lease, insurance)

[otoatlanta]

The sellers are remaining in the home after closing. Is this customary in this area in a buyer's market? If so, does the seller typically pay for utilities and mortgage while they still occupy the home?

[sweettea1]

This is something that should be spelled out in the contract. I've seen sellers 'pay rent' to the new owners per day and also situations that are more informal where the sellers have up to a week to move out after closing. Depends on your relationship really. If you think they'll ruin the place when they move, you should note that they may be required to pay damages.

[BobKovacs]

There's nothing "typical"- it all comes down to what you agreed to at the time of the closing. Why did you close without a written agreement on when they'd be out and what they would/wouldn't pay for? Who's insurance covers the loss if they burn the house down tonight? What about if they damage the property in the process of moving out? Sounds like you've got a potentially bad situation on your hands- have the given you any indication as to when they're planning on getting out?

[JayRockTeam]

This would have been spelled out in the purchase and sale agreement when you purchased the home.

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[BobKovacs]

Originally Posted by JayRockTeam

This would have been spelled out in the purchase and sale agreement when you purchased the home.

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I think in this case the correct term is "should".....lol

[JayRockTeam]

Originally Posted by BobKovacs

I think in this case the correct term is "should".....lol

True. I've never heard of this happening without a specific agreement. I'll like to know if it was dealt with in the contract at all.

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[George Chong]

Yes - the key word term is "should have". In other words, it does not depend on what type of market we are in but - should be clearly defined in the Purchase and Sales Contract. Possession can be at closing or at any period after closing (i.e., hours or days). I have given possession at 6 p.m. on the day of closing (personally) in order to get the movers coordinated and touch up the paint of the movers.

If you agreed to give possession after closing whether it be for several hours, days, weeks or months, all parties must agree whether or not there will be any type of compensation for utilities, "rent" and whether or not the Buyer(s) will conduct another walk through of the property. Assume nothing - everything must be spelled out and all parties must agree to all points in writing.

[michael krotchie]

Here in Arizona Coldwell Banker has a "Post-Purchase Lease Addendum" specifically for cases like this, where the seller intends to occupy the property after closing for a certain amount of time.

This form takes care of the daily rate/length/terms of the agreement. It's hard to tell from your original post, but have you already closed on the property? As other posters have stated, nothing is "customary".

In my experience, the sellers will pay for expenses incurred while occupying the property post-closing, but again this is all negotiable.

[otoatlanta]

Originally Posted by BobKovacs

There's nothing "typical"- it all comes down to what you agreed to at the time of the closing. Why did you close without a written agreement on when they'd be out and what they would/wouldn't pay for? Who's insurance covers the loss if they burn the house down tonight? What about if they damage the property in the process of moving out? Sounds like you've got a potentially bad situation on your hands- have the given you any indication as to when they're planning on getting out?

I should have worded the question differently. We do have an agreement, but as first time homebuyers, it just seemed odd for this to be the case. We didn't know how common it was and we were interested in knowing rather anyone else had agreed to such. That's all! Thanks for all the responses!

[sahm3]

when we sold our house over the summer, we closed on a Friday and had until 12noon on Sunday to official leave.. It was all in the contract , but don't remember specifics

When we bought our new house the owners had asked for a week, and we agreed to that as well.. it is not uncommon at all IMHO...
Certain places of the country do not practice this at all, and others request even longer.
When my sister sold her house in KY, they had 30 days to vacate.. Now THAT sounds crazy!!
Good luck