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Closing w out direct possession

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JWG421
Our miracle is here

Member since 12/12

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Closing w out direct possession

we have had a long ride w our closing for our condo
Everyone agreed to close next week but not have actual possession until sept 1

I am completely new to this-
I understand we do our walk thru aug 31 which is last day the sellers are at the unit

Besides them paying me for there stay, is there anything else I need to be aware of
Or take note on etc?

Posted 8/13/15 6:03 AM
 
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JerseyMamaOf3
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Member since 6/05

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Re: Closing w out direct possession

Their will be money held in escrow and you will do a second walk through. At that time if there is any damage you take it from escrow.
It's not uncommon

Posted 8/13/15 7:46 AM
 

LSP2005
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Member since 5/05

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L

Re: Closing w out direct possession

Can you close on 9/1. I would make sure if you can't that the daily price for them to stay becomes exorbitant. 1000 per day for every day beyond 9/2. You also want them to consent to eviction if they stay beyond 9/15. You want it painful economically for them to stay for even one day beyond 9/1. All of the money for the sale of the house must be in escrow until they move out. The reason you want to say the fee for them staying is a lot to make it more expensive to stay than even one night in a hotel and storage with removal fees, so the removal and storage look more attractive to them.

Message edited 8/13/2015 8:27:31 AM.

Posted 8/13/15 8:20 AM
 

JDubs
different, not less

Member since 7/09

13160 total posts

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Re: Closing w out direct possession

Posted by JerseyMamaOf3

Their will be money held in escrow and you will do a second walk through. At that time if there is any damage you take it from escrow.
It's not uncommon



This. When we bought our house we closed on 6/29 but the sellers did not move out until 7/1. They have to pay you a daily fee as rent, from what I recall.

Posted 8/13/15 12:16 PM
 

ElizaRags35
My 2 Girls

Member since 2/09

20494 total posts

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Me

Closing w out direct possession

We did it and it was fine. Money was in escrow, walk through was done once the keys were turned over with our agent and the sellers agent present. We even waived the daily fee as a courtesy. I forget why though.

Posted 8/13/15 7:53 PM
 

MrsG823
Just call me Mommy.

Member since 1/11

5570 total posts

Name:
S

Closing w out direct possession

Make sure you have you attorney write up a detailed agreement including all fees, etc. Once you close on the property the current owners become your tenants and if they refuse to vacate the premises on the agreeded upon date you could be stuck having to force them
To leave-an eviction Is not an easy process--our attorney strongly advised against us allowing the sellers of our house to rent from us- as a previous poster stated you can make an offer that they will not agree to- we told our seller they could stay if they paid the mortgage and the rent on our apartment-they decided to stay at a residence style hotel since it was less money per month and put their stuff in storage.

Posted 8/14/15 12:58 AM
 

Christine Braun - Signature Premier Properties
LIFamilies Business

Member since 2/11

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Re: Closing w out direct possession

As others have said, it's very common to close and not take possession immediately. The standard contract usually allows some period for the seller to remain in possession post-closing... usually 5-7 days. It usually happens when the parties have to close before the seller can move out because of a buyer rate lock expiring, or because the seller is buying something else and needs to close on the current home before he can buy the new one (and has nowhere to move in between or is lining up the move from house 1 to house 2 and the closings are only a day or so apart).

It's not ideal, and definitely simpler for buyers to take possession at closing. But if not, everything is worked out in an escrow agreement to govern the post-closing possession. Your attorney will go over everything with you and answer your questions.

I would definitely do a pre-closing walk through, even though you are not taking immediate possession. It's best to look at everything again before closing and make sure things are working and as they should be. If there are any issues, they can be worked out sooner rather than later. Then, you will definitely walk through again AFTER the sellers move out (basically when you get they keys and take possession). You should check everything again at that time (plus make sure there was no damage during the move out process), and then you will call your attorney to say everything is ok (and the seller's funds can be released from escrow).

Posted 8/14/15 10:38 AM
 

Mara1017
LIF Adolescent

Member since 5/11

696 total posts

Name:
Mara

Closing w out direct possession

Make sure there is a sizable escrow being held so that there is money if there is any damage done between closing and getting possession. I know my sellers were not happy about it but for me it was a deal breaker.

Posted 8/14/15 12:56 PM
 

babycakes18
LIF Adult

Member since 4/09

1281 total posts

Name:
Dani

Re: Closing w out direct possession

Usually there already is a post closing possession clause on the Contract of Sale that stipulates the post closing conditions...how many days, how much is the be held in escrow and how much the penalty is for staying in beyond the allowed timeframe. If you have a copy of your contract take a look...it may all be in there.

Good luck!!!

Posted 8/17/15 12:45 AM
 
 

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