moving out at closing on home (Conroe: lease, loan, house)

[Narkon]

I read a thread on here where a realtor said they advise thier sellers to move out before closing. At what point can a buyer no longer back out of buying the house?
I am thinking of selling and moving in to another area and renting for 6 months to a year. I think I may have to sign the lease to hold the place for me before my closing date.

I thought until a house buyer signed on the dotted line they could back out but I have only bought never sold. Thanks

[EasilyAmused]

Well, if they don't get funding at the last minute, then they can't buy it. I think you just wind up with the option money and are back to square one.

[Narkon]

So make sure they are pre-qualified?

I would have to pay the mortage and my lease?

[SkyeAnjel]

All buyers should be pre-approved before making an offer. The buyer typically has a 10 day option period to opt out of the contract , this is the time they get their inspections and appraisal done. If after the option period they choose to back out, they can lose their earnest money, option money, inspection and appraisal money.

[Lake Conroe resident]

[quote=Narkon;3635675]
I thought until a house buyer signed on the dotted line they could back out but I have only bought never sold. Thanks[/quote]

Your right, it isn't a done deal until the buyer signs their docs and the loan funds or they give their check to the title co if their paying cash... The repercussions if the buyer does not follow through after the option period is that they lose their earnest $, but that raises another problem if all parties involved don't/won't sign a release of earnest money form for the title company to give the earnest money to you...

[Bike4Life]

I would be skepitical of impuse buyers. A well planned home buyer would save and pay cash or talk with the home loan officer and get pre-approval. It shows that they have taken the time and patience to look for the right home...it took me over a year.

[Bike4Life]

Originally Posted by Lake Conroe resident

[quote=Narkon;3635675]
[b]that raises another problem if all parties involved don't/won't sign a release of earnest money form for the title company to give the earnest money to you...

Yikes, so now what do we do in that situation?

[nikkipal]

If no one signs and agrees on where the earnest money goes you cannot sell your home. Try to get them to sign it over to you they usually do. (You are entitled) but if they don't, just release it to them so that you can move on to the next buyer. I would not move until you have a contract out of the option period if it would put you in a bind. If not cluttered and well decorated a lived in home can sometimes do a lot better.

[MissDaisy]

Originally Posted by Bike4Life

I would be skepitical of impuse buyers. A well planned home buyer would save and pay cash or talk with the home loan officer and get pre-approval. It shows that they have taken the time and patience to look for the right home...it took me over a year.

I agree...we started looking in April 07, chose our home Nov 07, closed Apr 08

[Lake Conroe resident]

Originally Posted by Bike4Life

Yikes, so now what do we do in that situation?

I think another poster already made mention to this but if folks start arguing about earnest $ the title company can't release it to anyone and you as a seller can't sell the home to another party until this is resolved, I've seen some people get mad and wait until they have another deal on the table before signing it. Sometimes earnest money is a joke and because of this if I'm a seller I would much rather have a high dollar amount of option money than earnest $ as it's non refundable as well as being in your hand from the beginning, I think this shows the "earnest" of the potential buyer more than anything else such as "pre-approval" letters. I think what the point of all this is that your looking for some kind of "guarantee" and the only guarntee is that there is no guarantee. You can certainly minimize your risk/worry if your agent has determined from the other side that the buyer is not only ready and willing but able to proceed to the closing table...