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When we were selling a home in California, closing day brought . . . no closing. It's delayed by a day, we were told. The next day we were told the buyers weren't getting the loan after all. The next day we were told that the buyer had a heart attack. (Did he, or was this a way of getting back the earnest money?) We did later sell to a different buyer.
Our realtor in North Carolina told us that she once had a client back out on closing day because as she walked out the front door after the walk-through, she saw a snake. North Carolina actually allows the buyer to back out clear to the last minute.
The last time we moved, we had to wait for our house. We stayed in a hotel, and our stuff stayed with the moving company.
Allowing the buyers to park pods for a few days is a generous, but unnecessary, idea. Moving companies will generally allow a certain number of days of storage. Container services may actually allow less time once the container is delivered.
I can't give legal advice because every situation is different. But my instinct is that storage of personal property is a license and not an interest in real estate, akin to having a ticket at a concert. A license is readily revocable, and the seller has control over the buyer's property. I am very hostile to giving a copy of keys or allowing physical possession. I don't think a few items of stored property is a big deal.
If the stored property is difficult to move I'd ask for a deposit to cover moving moving or disposal costs in the event that becomes necessary.
Our realtor in North Carolina told us that she once had a client back out on closing day because as she walked out the front door after the walk-through, she saw a snake. North Carolina actually allows the buyer to back out clear to the last minute.
Does the buyer get his deposit back if he or she backs out though?
Does the buyer get his deposit back if he or she backs out though?
That point may be a bit dated, or vague, information for NC.
As described in the NC Association of REALTORS® Standard Form 2-T, Offer to Purchase and Contract, in the past:
Yes, in the past, a buyer could terminate right up to closing and claim an Earnest Money Deposit refund.
General paraphrase:
"If the Buyer cannot, in their own determination, get a loan, they can terminate prior to settlement and EMD shall be refunded."
Pretty strong stuff.
I had a Seller move out of their house, into an apartment pre-closing, and within 72 hours of closing, Buyers terminated and claimed the EMD.
And, went to contract immediately on the same model home, three doors down, and closed in a month.
Sellers talked to attorney, and the language had them stuck.
Very costly for them. Many thousands of dollars.
But, in (?) 2010, the form was revised.
It currently provides for a Due Diligence Period, wherein the Buyer can terminate "...for any reason, or no reason..."
That puts a pretty good balance into the situation, because after the DD Period, buyer cannot unilaterally terminate and get a refund unless Seller breaches the contract.
Last edited by MikeJaquish; 09-10-2017 at 06:24 AM..
We've moved several times for work and for upgrades in the local area. In the past we've been very flexible and accommodating in the area of pre-closing occupancy.
However, in one instance we were taken for a ride by a couple of shady realtors (including our own selling agent) who convinced us to let the "pre-approved" buyer move into our house before closing. In fact, they gave her the key from the lock box before we even said yes and signed any pre-occupancy paperwork.
We were miffed at that stunt, but we played along, signed the forms and formally allowed her and her kids to move into the house right before closing.
Then the delays in closing started. This document needs to be signed and processed, then that item needed to be done. Closing was pushed back several times. We were told that the two realtors were working very hard as a team to get the deal done.
Then the truth came out. The buyer was never pre-approved and had horrible credit. She couldn't get a mortgage if they were handing them out at a bus station!!!
Our good deed bit us in the butt and we fought to get her out of the house for months! Finally, after her kid set a fire in an upstairs bedroom, she vacated the house.
With that, we had to repair the fire damage, repaint the complete interior, and heavily clean what these slobs did to our home.
We don't get 2 days notice here either. You'll find out the day of closing if it's going to happen. If you're lucky, you'll get 2 hours notice with the amount for the cashier's check you need to bring to closing.
They issue CD (Closing Disclosures) 3 days before a buyer can sign loan documents. The buyer has final approval at that point when it is issued. Depending on how loans flow in your area that will be 4-6 days before close of escrow. If the CD has been issued, they are approved and ready to go. You will have 4 days with the amount you need to bring to closing. Not 2 hours. The laws have changed and it is federal law. It is called TRID and went into effect Oct of 2015.
Oregon never did business the way you talk about but I am sure this federal change was because of exactly what you are talking about. I can't imagine not knowing what you need to bring in a few days before closing. Cash is different and no CD is required for those transactions.
Buyer wants to move in his personal belonging to my house 2 days BEFORE closing date. Has anyone done that? Buyer needs to close selling his current house in the morning of closing date, then will close buying my house in the same afternoon. I understand his logistic issue and would like to help, but worry about insurance and legal issues. What if my house is damaged during buyer's pre-closing move in? I don't think my homeowner's insurance will cover this situation. What if the selling of his current house does not close as scheduled? Then my house will become his storage place. Any suggestions?
Just say no. Legally he should be obliged to close under the original conditions. I'm no lawyer, but something says that you are granting possession before title transfers. Your gut feeling about your home insurance is giving you a hint.
This is what PODS are for. They pack the pod at their old address. Have PODS store his stuff and deliver it after the closing.
Things go wrong at closings and you are counting on two closings going smoothly.
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