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Old 03-09-2017, 11:42 AM
 
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In making an offer, an agent informs me that it's the norm in Tyler for the seller to remain in the home for several days after closing...for free (except for utilities)...and then possession occurs.

I've never heard of such a thing. I've bought and sold several houses in two different states. It was always possession at closing, unless other arrangements had been made (which comes at a cost).

Anyone heard of this? I find it odd they didn't mention this to me before, even though I discussed the importance of the closing date with them before. These are my agents.
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Old 03-09-2017, 05:12 PM
 
2,649 posts, read 3,585,440 times
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Quote:
Originally Posted by bpollen View Post
In making an offer, an agent informs me that it's the norm in Tyler for the seller to remain in the home for several days after closing...for free (except for utilities)...and then possession occurs.

I've never heard of such a thing. I've bought and sold several houses in two different states. It was always possession at closing, unless other arrangements had been made (which comes at a cost).

Anyone heard of this? I find it odd they didn't mention this to me before, even though I discussed the importance of the closing date with them before. These are my agents.
Nah, maybe you could email the agents name, I doubt I know the person, as I've been out of the "business" for some ten years. However, I AM aware of several agents that would tell you such.

Again, just make the offer the way YOU want. If the seller doesn't agree, then of course, the "ball" is back in your "court".

But this IS odd, at least.
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Old 03-09-2017, 05:56 PM
 
6,615 posts, read 3,738,816 times
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Originally Posted by Mark Senior View Post
Nah, maybe you could email the agents name, I doubt I know the person, as I've been out of the "business" for some ten years. However, I AM aware of several agents that would tell you such.

Again, just make the offer the way YOU want. If the seller doesn't agree, then of course, the "ball" is back in your "court".

But this IS odd, at least.
Thanks, Mark. I'll pm you the agent's name.
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Old 03-09-2017, 06:03 PM
 
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Not that unusual for sellers to stay a few days after closing IF the buyers agree in writing and the sellers pay rent. Don't let these sleeze balls fool you.
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Old 03-10-2017, 06:11 AM
 
Location: Whitehouse, TX
27 posts, read 16,858 times
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Its called a seller's temp lease, and when used, it is used for logistics. There is no requirement for it to be used, but is often done as a courtesy. Often times, the seller cannot leave the house until they have their money. Sometimes, the money part of the transaction is not completed the same day that papers are signed. So, buyer offers a 1-3 day temp lease back to the seller so that they have time to collect their money, and move their stuff out.

If this mechanism was not used, the seller would have their stuff packed up and be at the closing table waiting and needing their check. If that check didn't come, they might not have any place to go. There have been cases where the buyer arrived on closing day expecting to move in. Seller is still in the house waiting for their check before they move out. "Closing", by the contract, doesn't occur until the money part of the transaction is complete. Seller is in the right, but it doesn't feel like it. The seller's temp lease just takes all the drama out of the equation.

Some states actually have this as a requirement, Texas does not. As I said, when used, it is done by agreement between the parties, and done as a courtesy.

In the OP's post, it sounds as if the buyer's agent should have worked backward from the move in deadline, and had the closing date be a couple of days before that.
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Old 03-10-2017, 06:20 AM
 
Location: Wonderland
44,684 posts, read 36,118,702 times
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Quote:
Originally Posted by RichardPerry View Post
Its called a seller's temp lease, and when used, it is used for logistics. There is no requirement for it to be used, but is often done as a courtesy. Often times, the seller cannot leave the house until they have their money. Sometimes, the money part of the transaction is not completed the same day that papers are signed. So, buyer offers a 1-3 day temp lease back to the seller so that they have time to collect their money, and move their stuff out.

If this mechanism was not used, the seller would have their stuff packed up and be at the closing table waiting and needing their check. If that check didn't come, they might not have any place to go. There have been cases where the buyer arrived on closing day expecting to move in. Seller is still in the house waiting for their check before they move out. "Closing", by the contract, doesn't occur until the money part of the transaction is complete. Seller is in the right, but it doesn't feel like it. The seller's temp lease just takes all the drama out of the equation.

Some states actually have this as a requirement, Texas does not. As I said, when used, it is done by agreement between the parties, and done as a courtesy.

In the OP's post, it sounds as if the buyer's agent should have worked backward from the move in deadline, and had the closing date be a couple of days before that.
I agree completely with your entire post.

I sold real estate for several years in the Tyler market, ending about 8 years ago.

It was very common for sellers to remain in the house with a seller's leaseback agreement (temp lease) for 1-3 days and occasionally longer. It was not "free" usually, though occasionally it was.

Sometimes it just makes more sense and it works well for either party. Closings can and do fall through sometimes - what if the seller has already packed up and moved out, as the post above describes?

Anyway, if the date is so important, then the OP's agent should have made that clear from the get go with the other agent.
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Old 03-10-2017, 08:05 PM
 
6,615 posts, read 3,738,816 times
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Quote:
Originally Posted by RichardPerry View Post
Its called a seller's temp lease, and when used, it is used for logistics. There is no requirement for it to be used, but is often done as a courtesy. Often times, the seller cannot leave the house until they have their money. Sometimes, the money part of the transaction is not completed the same day that papers are signed. So, buyer offers a 1-3 day temp lease back to the seller so that they have time to collect their money, and move their stuff out.

If this mechanism was not used, the seller would have their stuff packed up and be at the closing table waiting and needing their check. If that check didn't come, they might not have any place to go. There have been cases where the buyer arrived on closing day expecting to move in. Seller is still in the house waiting for their check before they move out. "Closing", by the contract, doesn't occur until the money part of the transaction is complete. Seller is in the right, but it doesn't feel like it. The seller's temp lease just takes all the drama out of the equation.

Some states actually have this as a requirement, Texas does not. As I said, when used, it is done by agreement between the parties, and done as a courtesy.

In the OP's post, it sounds as if the buyer's agent should have worked backward from the move in deadline, and had the closing date be a couple of days before that.
Thanks for the info. I would have thought that it would be something that the seller would request, if it's needed. And then some amt of rent be paid, since there is a cost to the buyer.

As it happened, I moved the sale date back a week, so that I could be sure I'd have the property by the date I needed. I allowed them 3 days for free (but now I now that is not the norm, I guess), BUT I added $250 per day charge if they overstayed.

But I lost out on the deal, anyway. I'm out of town...despite my offer of full list price, cash, and the 3 days free stay, they thought I was too much of a risk to wait one day, since I might not like it (I was going in the next day). So they actually took a lower offer instead.

But thanks for the information. This 3 day thing just appeared in the contract without any warning (glad I read the contract), despite my having discussed with the agent in detail the closing date I needed and such (I have a deadline coming up...so the closing date is critical). He never once mentioned that BTW...that closing date...you won't REALLY be taking possession that day.

I'm not going to offer free days again. I have to pay for HO ins. & taxes, and there's a risk of damage. Some small fee should be charged.
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Old 03-10-2017, 08:14 PM
 
6,615 posts, read 3,738,816 times
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Quote:
Originally Posted by KathrynAragon View Post
I agree completely with your entire post.

I sold real estate for several years in the Tyler market, ending about 8 years ago.

It was very common for sellers to remain in the house with a seller's leaseback agreement (temp lease) for 1-3 days and occasionally longer. It was not "free" usually, though occasionally it was.

Sometimes it just makes more sense and it works well for either party. Closings can and do fall through sometimes - what if the seller has already packed up and moved out, as the post above describes?

Anyway, if the date is so important, then the OP's agent should have made that clear from the get go with the other agent.
Thanks for the confirmation and info, Kathryn.

It was a cash deal, so unlikely closing wouldn't happen, barring the house burning down.

I have heard of a courtesy leaseback, if requested, but have never heard of a "norm" being that a seller stays for free for three days.

And yes, the closing date was critical for me, so he just was sloppy, I guess, in not telling me this "norm" thing that doesn't really appear to be the norm.

Thanks, everyone, for your information.
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Old 03-11-2017, 06:00 AM
 
Location: Whitehouse, TX
27 posts, read 16,858 times
Reputation: 63
Just so you know, the language of the leaseback protects you in every way. In fact, it creates a bonafide lease. But this is where gut instinct has to come in. The seller isn't some stranger off the street. This is a person who has lived in this house for a period of time, sometimes a very long time. They really have no interest is wrecking your house, knowing that you could take them to court and win.

When I write the leaseback for a buyer, I ask the seller if they plan on being out by closing, or if they need time. I then let the buyer know. If the buyer doesn't give any instruction, I write it with no deposit, no rent, 72 hours after closing, and a $500/day holdover. Buyer gets the keys at closing, house is usually vacant within 24 hours, and everyone is good to go. And, we always do a walkthrough the day of, or before, signing to ensure that the house is in the proper condition.

It's the surprises that cause problems, so I try to prepare my clients before hand, and during, to avoid the surprises.
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Old 03-11-2017, 06:32 AM
 
Location: Wonderland
44,684 posts, read 36,118,702 times
Reputation: 63246
Quote:
Originally Posted by bpollen View Post
Thanks for the confirmation and info, Kathryn.

It was a cash deal, so unlikely closing wouldn't happen, barring the house burning down.

I have heard of a courtesy leaseback, if requested, but have never heard of a "norm" being that a seller stays for free for three days.

And yes, the closing date was critical for me, so he just was sloppy, I guess, in not telling me this "norm" thing that doesn't really appear to be the norm.

Thanks, everyone, for your information.
Just for some perspective - I know a realtor whose sellers were in a wreck and KILLED on the way to the closing.

Also, recently, my dad was in the process of selling some land, and he unexpectedly died. In order to accommodate the new paperwork needed, the new situation with the title company, and all parties involved, the closing date had to be moved forward almost a month.

Once I had a "four house deal" (every sale hinging on the sale right before it) - I was actually the "second house" in the deal, and when my customers closed on their house, they could buy the house they'd found in Tyler. Well, guess why our closing was delayed - they were from Florida and their house was right in the direct path of a hurricane! It did sustain some roof damage, which they then had work out repair wise with the new buyers.

So buying the house in Tyler was postponed, which had a domino effect for the sellers here, and then the sellers of the house they were going to buy - and THOSE sellers and their buyers!

So even though a deal can seem risk free, crazy things do happen.
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