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From what I've gathered, it's fairly commonplace for a seller to maintain possession several days after closing. I'm having a hard time grasping this concept.
So I will OWN the house and be paying the mortgage while a stranger lives in it? They are putting several thousand dollars into escrow, but what if something gets seriously damaged? Or, what if they refuse to leave? Get injured on the property? And so on.
My lawyer had me sign the contract, but every time I mention this to folks, they think it's nuts.
How can I make sure I am protected? Is this normal?
If I remember correctly, in these situations a daily rate is usually negotiated for as long as they stay in the house. your lawyer could probably tell you best regarding damage/injuries etc..
This is normal. They will put money aside for damage and they will also pay you a daily rental until they move out. The move out day is usually on the contract. 2-3 days is normal.
It happens all the time. They will pay you "Daily Rent" and put money in escrow for liability. When you think about it...buying a house is not always so cut and dry because people you are buying from are usually buying from someone who is buying from someone yadda yadda yadda.....and without these kinds of compromises things would not work out as smoothly. I'm sure they would love to get out as much as you would love to get in....and I bet they can't wait to get into their new house!
When I did this with my first house, my lawyer put in a daily rent, but if for some reason they stayed beyond the time they needed to close on their new house and get out, the daily rent increased over time.
I did this once, and I won't ever do it again. I was asked to allow possession two days after closing so that the sellers could have time to move, and they needed the money from the closing to pay for the movers. It seemed reasonable and I did it thinking I was being kind. I did a walk through with all their possesions still in the house and everything seemed in order, so we closed.
Two days later, I saw why they did this. There were big cracks in the wall behind where the china cabinet was (which no one would have found until it was moved). They had all kinds of boxes piled up in the basement hiding more damage. Neither I nor the inspector thought much of this because hey - people have to pack and put the boxes somewhere. They trashed the house on the way out. It was filthy. I would have expected them to at least sweep and flush the toilet on the way out, but no. They also took all the shelving out of the walk in closet, which if you've ever had California Closets, you know is very expensive.
My alternative was to sue, which would have cost more time and money and strength than I had at the time because I was going through a divorce, so they got away with it. I hope their karma catches up with them.
I also had a friend who had to evict people who she agreed to let stay for one month, and they wouldn't leave.
We're both the wiser for this, and we won't ever agree to closing with any occupants, and we want a walk through with the house vacant on the morning of closing. No ifs, ands, or buts.
Good luck to you. Your lawyer doesn't sound so sharp.
I did this once, and I won't ever do it again. I was asked to allow possession two days after closing so that the sellers could have time to move, and they needed the money from the closing to pay for the movers. It seemed reasonable and I did it thinking I was being kind. I did a walk through with all their possesions still in the house and everything seemed in order, so we closed.
Two days later, I saw why they did this. There were big cracks in the wall behind where the china cabinet was (which no one would have found until it was moved). They had all kinds of boxes piled up in the basement hiding more damage. Neither I nor the inspector thought much of this because hey - people have to pack and put the boxes somewhere. They trashed the house on the way out. It was filthy. I would have expected them to at least sweep and flush the toilet on the way out, but no. They also took all the shelving out of the walk in closet, which if you've ever had California Closets, you know is very expensive.
My alternative was to sue, which would have cost more time and money and strength than I had at the time because I was going through a divorce, so they got away with it. I hope their karma catches up with them.
I also had a friend who had to evict people who she agreed to let stay for one month, and they wouldn't leave.
We're both the wiser for this, and we won't ever agree to closing with any occupants, and we want a walk through with the house vacant on the morning of closing. No ifs, ands, or buts.
Good luck to you. Your lawyer doesn't sound so sharp.
That's the exact thing I started thinking about it. Thought maybe I was being paranoid. Thanks to your post, I will be sure that every single item is moved and every inch inspected. We're buying from a seemingly nice family - but you never know!
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Cool...
