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My friend's supposed to close thursday morning... they visited the property friday & were surprised to find someone living in the property. Apparently, the house was rented out. My friend is sure this happened after January 6 cause they were there to have some work done on the house as part of loan requirements.
Has anyone every encountered this here? She's had the house fixed & she's already spent around $3k for appraisals & the work needed.
If your friend is working with an agent, then first discuss situation with the agent. Hopefully your friend has a solid contract that covers issues like this. May need to get an RE lawyer involved to review options.
This is going to sound like a strange question, but are you sure the seller even knows they are there? This could be a craigslist scam. In other words, someone other than the seller could have rented the house to them, and they may have no right to be there at all.
Either way, whether it was the seller or not, that is a tough situation to be in as the buyer. Did they actually close on the house yet? If not, I would refuse to close unless the seller gets them out. And hire a real estate lawyer to collect back money spent.
My friend's supposed to close thursday morning... they visited the property friday & were surprised to find someone living in the property. Apparently, the house was rented out. My friend is sure this happened after January 6 cause they were there to have some work done on the house as part of loan requirements.
Has anyone every encountered this here? She's had the house fixed & she's already spent around $3k for appraisals & the work needed.
Isn't this fraud?
Apparently has a whole meaning to me far removed from how you are using it. Apparently, there is someone living there - whether the house is rented, whether it is rented for the time up until closing, whether they are SQUATTERS is unknown; therefore not apparent.
What is fraudulent? Someone living in the house? the owners? No, that's not fraud. Squatters - still not fraud but illegal; rented through the closing date? again not fraud.
So, you friend needs to ask her lawyer/realtor what gives? It's only apparent that something is not how she expected.
Isn't the seller still liable, since "She's had the house fixed & she's already spent around $3k for appraisals & the work needed." What if the current occupants somehow damaged something in the house after the fixing and and appraisals?
The OP said her friend, the BUYER, paid that money. But until the closing, the seller owns the property and yes, is liable - for what? depends on whether you are talking about the buyer or the renters, or the mortgage holder.
Isn't the seller still liable, since "She's had the house fixed & she's already spent around $3k for appraisals & the work needed." What if the current occupants somehow damaged something in the house after the fixing and and appraisals?
Does it say in the contract the house has to be vacant? Even if it does, the seller hasn't done anything wrong unless they aren't out by closing. If the house isn't in the same condition as it was when you signed the contract and removed the contigencies then yes they would be liable for fixing the damage and maybe your appraisels and inspections if you sue for it.
Does it say in the contract the house has to be vacant? Even if it does, the seller hasn't done anything wrong unless they aren't out by closing. If the house isn't in the same condition as it was when you signed the contract and removed the contigencies then yes they would be liable for fixing the damage and maybe your appraisels and inspections if you sue for it.
The buyer is justified in his expectation to receive the house in the same condition as it was at the offer time.
If the house was not rented at the time of the offer, it cannot be rented during escrow without full disclosure to all parties involved and approval of the buyer.
Look into it carefully to determine the legal position of the current occupants as they may be squatters, renters or full right property owners as possesion is constructive notice of ownership.
In PA we do pre-settlement walk thru's usually the day of or sometimes the day before. If the property is not in the condition that it should be in then you do not need to settle and your escrow is returned.
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