Moving out of house before closing? (RE agent, contingencies, documents, clause)

[MargaretHunter]

Our RE agent this us that we must move out of our house before closing, state law (PA) she says.
What then happens if, at closing, the buyer demands extra cash (for example $20,000 instead of $10,000 for repairing a defect). We would have no choice but to pay it as we will have already rented an apartment and moved all our belongings in. Is this really how it works?

[BoBromhal]

in general, closing and recording the deed transfering ownership means the house is theirs not yours, and none of your possessions should be in the house OR on the property at the time of closing.

If the Buyer were to demand something unreasonable, then they're in the wrong contractually, and so you could have whatever earnest money deposit they provided, and they get nothing.

I know that people have all different personalities, psyches, whatever. You're expressing an anxious, doubtful, pessimistic, or fatalistic emotion where you really shouldn't be concerned. Based on what you've told us, it should close just fine. But you'll no way be responsible for an extra $10K at the last minute.

[rational1]

Presumably all contingencies have been satisfied at this point.

There are very few things that would justify a demand for a concession from the buyer at this point. One would be a major change in the property after the pre-close inspection. (Are you in the path of a CA wildfire?).

The other would be your failure to deliver the property in broom-clean condition.

[Diana Holbrook]

We have often negotiated early or delayed possession by one side or the other, to make arrangements for buyer and/or seller's situations... coordinating closings on other properties, logistics for moving. Many of our clients have farm animals, and it's not easy for them to just move out and stay in a hotel for a few nights until their new place is vacant. So we make arrangements in the contract for those situations... like possession for three days after close, or early possession in their new home so they can be moved by close... but those arrangements are usually best made at the beginning of the contract, during the honeymoon period... Not at the end, when everyone is tired of the process, and sometimes each other, and have made commitments based on the dates already in the contract.

[MikeJaquish]

I am VERY curious about a "state law" that says a seller must be out of the house at closing.

[mathjak107]

I think because pa uses a standardized state contract document it is believed to be state law by the poster.

The closing, or 'settlement' process itself general takes place at one table (either at the office of an attorney or title company), where buyers sign all documents related to their loan and the transaction itself. After all documents are signed and payments exchanged, the deed is recorded with the county. Buyers generally take possession of the keys immediately thereafter unless a separate agreement has been reached to allow the seller to stay in the property for a period after closing.

[turf3]

Well, OP, what does your contract say?


Remember that clause that says something like "this contract shall constitute the entire agreement"? It means just that.


If your buyer comes to closing with an unanticipated demand, you have the right to require them to live up to the contract, as long as what you are delivering is what's described on the contract.

[Slytrix]

I have never and will never move out of my house prior to closing.

[MargaretHunter]

The contract was signed at the time we accepted the buyer’s offer. Since then there have been numerous inspections which have uncovered several issues, mostly minor, which will require repair/remediation. We prefer to give the buyer a credit to cover the cost of these repairs, which I expect will be ok with them.

What concerns me is that they could, just before the closing, demand additional (maybe outrageous) amounts for ????.... I’ve heard of this happening when the buyer just decided he didn’t want the property after all, and hoped to get out of the deal without losing his deposit. This is probably unlikely as they seem to really want our house, but you never know.

So is there anything we can do in advance?

Thanks for any help with this.

[Diana Holbrook]

It sounds like you are still early in the contract, and still negotiating inspection response. By the time you get to closing, there shouldn't still be uncertainty as to whether the buyers are OK with your inspection response. There should be a clear request from them, signed, and a clear agreement signed and accepted by all parties as to what will be done. As long as none of the repairs are vital items that the *bank* will require prior to financing their loan, the issue of inspections and the amount of your concession should be settled when you all sign off on it, long before closing. No, they don't have the *legal* right to just arbitrarily re-open that negotiation and make more demands later... at least in our area with our contracts.

Until it's over, of course lots of things *can* come up at the last minute, but as long as seller still wants to sell, and buyer still wants to buy, usually, any issues can be worked out. That's what the agents involved are for! Worrying about things for you. It's not usually good use of time or energy to just imagine what-ifs unless there is cause to be concerned about them.