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Old 05-17-2010, 09:26 PM
 
Location: The OC ( hopefully not for long !)
4 posts, read 11,650 times
Reputation: 10

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This is our story .. we are in escrow on a short sale, everything is going good and we should close in 2 weeks . Here is the situation.. Bank of America has a closing date of up to June 28 on its approval letter . We needed it to close 2 weeks before that so we can move in. The sellers would have prefered to stay till the end of June , but we told them that won't work for us . We need to be in the 3rd week of June . Our agent said it would be in our best interest to close ASAP so other liens can't pop up.So it will be quick 3 week escrow. ( We are paying off their HOA and water and sewer bills and 6K towards a second) We are ok if they stay a little longer past the closing of escrow if that is what is needed to get this deal done.So we said they can Stay past closing till June 15th.They seem to be grateful for the extra 13 days past escrow. Our agent say we can do a occupancy agreement with them and advised us not to do a rent back to elimate it being a landloard, tenant situation if there is a problem with them not getting out. So they will be basically staying for free. He said we need to write up the agreement and I want to make sure I have the correct terms in it to protect us. Has anyone been in this sitauation and how did you handle it?? The house would be empty anyways till the 15th if we close on the 1st so the sellers staying a little longer is ok, we just want to clearly state in the contract when they need to be out and what there status is in the house,öur "guests" öccupants" , Help any advice is appreciated !
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Old 05-17-2010, 09:28 PM
 
Location: NJ
17,579 posts, read 39,633,822 times
Reputation: 16131
Get a lawyer.
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Old 05-17-2010, 11:50 PM
 
Location: Tempe, Arizona
4,511 posts, read 11,884,875 times
Reputation: 2193
Yes, get a lawyer to advise you. You need to be properly protected while they are living in your home. Making up your own occupancy agreement without proper knowledge of legal consequences and remedies is not a good idea.

My brokerage has a standard post-occupancy agreement that covers possible damages and liabilities, insurance concerns, utilities, etc. for the buyer and seller. It requires a per diem charge for consideration of the agreement (not a rental agreement). It includes penalty charges for exceeding the occupancy end date, and so on. You may want to check if your agent's broker has a similar agreement.

Last edited by rjrcm; 05-18-2010 at 12:02 AM..
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Old 05-18-2010, 09:01 AM
 
930 posts, read 2,166,926 times
Reputation: 1000
They want "cash for keys". You can read hundreds of postings on Loansafe.org of squatters living rent free in that exact situation who ask "how can I get paid to move out? I heard my uncle earl got $3,000 to leave. Of course he blew it all on hookers, but that's not the point.... "

You are dealing with some real contributors to society here. The next time someone hears "how can I get cash for keys", kick them to the curb.
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Old 05-18-2010, 10:30 AM
 
359 posts, read 979,594 times
Reputation: 252
"Rent backs" are very common in my area but not without an escrow set up (with sellers funds) establishing a daily rate for occupancy after close. So lets say you establish a 30 day occupancy clause in the contract with a $3000 escrow. They now have motivation to leave ASAP as each day is costing them about $100. I did that with 2 previous homes both as a seller and buyer. I was allowed 30 days but got out of there after about 14. Escrow paid sellers their portion and returned the unused balance to me.

Why would you choose to let them stay in your home without paying? What would be their motivation to leave?
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Old 05-18-2010, 10:41 AM
 
Location: Austin Texas
434 posts, read 1,150,553 times
Reputation: 158
Here in Texas there's something callled a "Lease Back". Not sure if this holds true for short sales in your state, but if you were to close and the sellers needed time to get out you could do a Lease back, stating the amount (maybe per diem) and a date to get out. But keep in mind: some sellers are known to (after the house forecloses) go to the foreclosure auction, bid on thier house, not pay (of course) and by doing this have given themselves 30-60 days more to stay in the house till it comes up for auction again. Sellers get desperate to stay in their houses sometimes. The sellers in a Short Sale see $0 profit from the sell.....just sayin'.
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Old 05-19-2010, 11:16 AM
 
Location: Richardson, TX
11,002 posts, read 17,490,046 times
Reputation: 27752
1) Don't do it.

You could end up having to evict them for sure, and probably will. (or giving them cash for keys.)

2) If you insist on doing it, please get a lawyer.
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Old 05-19-2010, 01:02 PM
 
Location: Illinois
8,536 posts, read 6,360,899 times
Reputation: 14838
They basically will be staying for free? Oh no, please get legal advice.
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