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qtdimps231
LIF Toddler
Member since 11/07 477 total posts
Name:
Diana
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Sellers staying in house after closing
The seller requested to stay in the house 5 days after closing. My lawyer says this is a common request, but the seller must compensate me for that time. They originally put in the contract they'll pay $2800 for 5 days and $150 for every day after that. My lawyer then comes back saying they must put $10,000 in escrow to stay for 5 days. I think that's an insane amount to ask, but my lawyer is insisting it's not a lot considering theres a chance the seller wont leave and id have to evict her. but she's never had that happen.
Did you guys have this in your contract? How much did the seller put into escrow?
TIA!!
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Posted 5/14/08 8:45 AM  |
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Prudential Douglas Elliman Real Estate
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bicosi
life is a carousel
Member since 7/07 14956 total posts
Name:
M
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Re: Sellers staying in house after closing
I did. Our sellers stayed in the house for 2 weeks. Apart from them having to pay per diem, we also had a clause put in that we'd do a final inspection on their last day and if the house wasn't in the same condition, they'd have to pay up.
Your attorney sounds like he knows what he's doing and that he is just trying to protect you.
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| Posted 5/14/08 8:49 AM |
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Lillykat
going along for the ride...
Member since 5/05 16253 total posts
Name:
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Re: Sellers staying in house after closing
I think that is the right thing to do - what if for some reason they decide 5 days isn't enough and it is a month later - etc. Just b/c it hasn't happened before doesn't mean you won't be the 1st. But it is more I think for the reason what if they stay and they break or destroy something before they leave. This way you have a way to take care of it. I think it is a smart thing to have in there.
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| Posted 5/14/08 9:22 AM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: Sellers staying in house after closing
I think you should. I want to say that our contract said $250/day after the first 5 days - sounds like if they are looking for a lesser price - they might be in longer than 5 days?
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| Posted 5/14/08 9:29 AM |
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JldDolphin
Member since 1/07 6929 total posts
Name:
Jen
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Re: Sellers staying in house after closing
Our lawyer changed ours to 3 days that the sellers had to stay in the house. We were fine with that. They didn't even stay one day. I believe they put about $5000 into escrow for that and any day after the 3 days they had to pay us $250 per day. Your lawyer is doing the right thing. GL!
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| Posted 5/14/08 9:40 AM |
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TreAnt427
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Member since 8/06 8652 total posts
Name:
Tracy
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Re: Sellers staying in house after closing
It is in our contract that if they are still in the house after closing, they have to $250/day.
The money will be held in escrow, that way they can't get away w/o paying.
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| Posted 5/14/08 9:48 AM |
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shapla79
Where Does The Time Go?
Member since 11/07 4619 total posts
Name:
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Re: Sellers staying in house after closing
We had a similar request from the sellers when closing on our house. The terms were the same as what you described, except they only had to put $5K in escrow. The reason the sellers needed the 5 days was because that was the earliest date they could get with the movers to take their belongings to their new house.
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| Posted 5/14/08 10:58 AM |
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gmnst15
LIF Adolescent
Member since 5/05 593 total posts
Name:
Jess
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Re: Sellers staying in house after closing
In our contract it says that if they are still in the house after closing, they have to put $3000 into escrow and then pay us $200/day.
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| Posted 5/14/08 1:19 PM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: Sellers staying in house after closing
That is a common request and most contracts allow a seller to stay in the house for up to 5 days without paying the purchaser anything per day except the per diem on their mortgage and taxes. Our sellers stayed in the house 4 extra days and we allowed them as long as they paid the taxes and mortgage per diem for those days. As a purchaser's attorney I would ask for $5000 to be held in escrow and as a seller's attorney I wouldn't be willing to hold $10,000 in escrow for the possibility that my clients wouldn't get out--seems a little excessive, especially since they are giving so much for the 5 days they want to stay. If it is $150 a day they would have to stay in the house 67 days after the initial 5 days in order to exhaust the escrow. I think $5000 is more then enough I have never had a seller stay in a house longer then 3 days-and it is usually so they coordinate their purchase and move out of the house they sold. The fact that they are willing to give you the $2800 up front for the 5 days I think is overly generous of them and would be incentive enough for me plus the $5000 to ensure they would leave.
Message edited 5/14/2008 3:03:33 PM.
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| Posted 5/14/08 3:00 PM |
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dpli
Daylight savings :)
Member since 5/05 13973 total posts
Name:
D
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Re: Sellers staying in house after closing
Our seller requested this, but our attorney said no dice. He doesn't recommend it because if something were to happen during those 5 days, you would be responsible since you are now officially the owner of the property. He didn't think it was worth the potential liability and we agreed. If it were a problem, we would have just adjusted the closing date.
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| Posted 5/14/08 9:25 PM |
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smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
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Re: Sellers staying in house after closing
Posted by dpli
Our seller requested this, but our attorney said no dice. He doesn't recommend it because if something were to happen during those 5 days, you would be responsible since you are now officially the owner of the property. He didn't think it was worth the potential liability and we agreed. If it were a problem, we would have just adjusted the closing date.
That's exactly what I did when I had purchased a house in NC years ago.
The owner wanted to stay 1 week after we had closed. The lender was OK with it. Everybody was fine with it. I was not.
In the end, I decided not to allow it. They were mad but my reasoning was the following. What would happen if a fire burned the house down and one of their children died? I knew they would blame me and find me liable. I did not want to take the chance. That added to the fact that I would have had to redo an inspection if they broke something while they stayed. Too much of a hassle.
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| Posted 5/14/08 9:36 PM |
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HelenZ
So worth the wait :)
Member since 10/07 2862 total posts
Name:
Helen
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Re: Sellers staying in house after closing
you definitely want to have some $$ put aside in escrow just in case- a friend of mine was buying a townhouse and the previous owners stayed for 3 weeks and had to pay up!!
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| Posted 5/14/08 11:08 PM |
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