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Dugsmom
03-27-2008, 11:22 AM
We are in the process of selling our home...we will be closing May12th. We are no longer living in our home because we moved out of town. we are stuck paying 2 house bills ( we are renting right now), 2 utility bills, ect. Our buyers asked our agent if it be possible for them to move in 2-3 weeks before closing. We have no problem with them moving in but we are worried that after living in the house they might decide they don't want it after all. There is absolutely nothing wrong with our house...we actually completely remodeled it (new wood floors, fresh paint, new kitchen cabinets, completely remodeled bathroom, new roof, ect) but we are worried that they might decide it's not the home for them. Our agent says that these are really good people and that he trusts them 100% and he doesn't think we'll have any problems. They only put $500 in escrow so they don't have much to lose...we, on the other hand, have a lot to lose. They put in the offer last month and asked our agent to put a sold sign in front of our house even though it's still pending. He says he'll still take offers but who's going to go see a house that already has a sold sign up front. If they don't buy our house, we'll have to start all over...and that's after we've lost 3 months worth of mortgage payment (and utility payments...we have to have heater on 24 hrs so it's getting pricey) plus who knows how many more months until our house sells (if they don't buy it). So what do you think? We are going to ask them to put in $1000 more in escrow (that will goes towards their down payment when they buy the house) and we will required them to pay rent for those 3 weeks and they have to change utilities to their name...
Do you think it's a mistake to let the buyers move in before closing???
Thanks
Jessica


Cornelius
03-27-2008, 12:02 PM
With a situation like this you should consult with a Real EstateAttorney.
Cornelius N. Key
www.prepaidlegal.com/hub/ckey (http://www.prepaidlegal.com/hub/ckey)
(510) 292-8956

brentw
03-27-2008, 02:22 PM
I would charge rent for that period, so much per day. There is actually a form that most Realtors have to facilitate this.


spacechimp
03-27-2008, 08:11 PM
have inspections already been done?

Mom in Nevada
03-28-2008, 07:58 AM
It may be that youragent already told you the pros and cons of letting the buyers move in before the close but remember that the real estate agent is most concerned that the sale doesn't fall through (by telling the buyers NO, you can't move in).
As a renter they could do a number of things in the house that costs you additionally if they back out before the close; as a landlord you still have full liability if the house should burn down or flood (heaven forbid but things do happen).

Bottom line without me going on a rant: when we bought our current house our seller made us sign a waiver just to leave our contents here but absolutely would NOT allow us to stay overnight here until the money and deed were exchanged. It was just overnight!

We were in a situation where we sold a house in another state, my brother had an extra key to maintain the swimming pool while it was on the market, he went over to leave the extra key the night before the closing to find that the buyers had already filled OUR garage up with their stuff! No, we were not told about this but our insurance on the house would have had to pay for all that stuff if something had happened!

And only paying $500 in earnest money...that's pretty sad for them to ask you to take a risk on you but only putting up that much to 'trust' they won't back out.

I agree that you should have an attorney that is looking out for your interest ONLY, not gaining from the profits of a sale!!

Dugsmom
03-28-2008, 07:26 PM
Thank you so much for all the advice. We spoke to our realtor and told him that we needed $1000 deposit and the buyers have to change all utilities to their name. He says he's going to draw up some papers to send us to sign...not sure what he's putting the in paperwork. We'll find out when he faxes them over.
Spacechimp- They didn't get an inspection done but we did have some other buyers who did. It didn't work out with them because they decided they wanted us to give them $14,0000 in cash (this is after we went down on the price). they thought we were desperate because we are living out of state but we told them no thanks and that was the end of them. Anyway they had an inspection done (nothing major wrong with the house...just a screen missing, a small crack in the window) and we got a copy of it so when the new buyers came along (the day after our first buyers pulled out) we gave them a copy.

Our realtor was supposed to call their realtor to discuss the terms but he hasn't called us back yet. We'll see how that goes....
Mom in Nevada- Wow I didn't know we'd be liable for their stuff. maybe we should require that they get renters insurance even if it is just for a few weeks...you never know huh? The snow is going to start melting in April and that town is known for it's floods and I'd hate to have to worry about that!!! I wonder if we'd be liable if the buyers got hurt in the house (I hope that doesn't happen)...
Jessica

Mom in Nevada
03-28-2008, 08:25 PM
I think I feel your need to get the house sold and living out of state makes it hard, as I said we were in that situation a few years ago. The things that concerned me in our situation didn't even touch the reality that we learned when we asked our seller here (just recently) to just spend one night here. He said NO! He let us put our stuff here but absolutely would not let us stay the night. The reasoning was liability as well as damage. Until the money and deed change hands anything could happen.

Not saying your real estate person isn't thumbs up but facts are facts. Your real estate agent wants the house to sell for their own profit. They want you to allow them to sell your house, they are not looking out for your interests as you might believe, they want the commission.

You might want to check with your insurance person (and maybe even mortgage person) the reason is the insurance may not cover renters, it may even exclude them. Thereby making your property a rental even for a short time, your house itself would not be covered.

Not meaning to cause nightmares, but a house is the most price value asset you have PROTECT yourself first. And I don't know the price of your house but $1000 won't replace much if they do damage in a week and bail out on you! Even carpet or wood floors cost more than that.....

It's just not as easy as it probably sounded when they wanted to rent the house until it closes! There are a lot of if's and what's and you are the biggest loser if anything goes wrong! Good luck and let us know how it goes when you are finally closed on it!!http://www.wahm.com/forum/smileys/smiley20.gif

odear6
03-30-2008, 07:37 PM
First thing I would be asking it; PROOF OF $$$$$, not the prequalified letter the actually lock letter you get from the bank saying you have your loan and it is just waiting for you to sign it.


Next I would be asking to up the closing two weeks. My friend lost big on her house, the buyer & her agreed for the buyer to move in 5 days prior to closing, well the buyer never showed up at closing, my friend got the earnest $$ (1500) but it cost her that much and more to get them out of the house. I would really get an attorney and be very careful.

Dugsmom
03-31-2008, 07:13 AM
Mom in Nevada and Odear6, Thank you so much for the info!! You have given us ALOT to think about.
I am calling my realtor today to tell him that that we've changed our minds. this is way too complicated and we have way to much to lose!

Thank you everybody for taking the time to respond to my question...I really appreciate it!
Jessica

Mom in Nevada
03-31-2008, 07:40 AM
I sincerely hope that things work out for you! I can honestly say in your shoes I would not take the risks either! If these buyers are so worthy then why can't they simply move up the close date? If they are credit worthy and need to move sooner then put it back on them and their bank, you shouldn't have to be burdened with their problems.

odear6 is right, once a person takes up residence it's difficult to get them out and expensive. Some states it takes up to six months, that's six months you are still making mortgage payments, six months that they can wreck the house etc.

I know these are worse case scenarios but it's not a cheap loss for you so you have to consider what could happen!!! good luck to you!!

MamaPigg
03-31-2008, 04:32 PM
Ditto this:

"odear6 is right, once a person takes up residence it's difficult to get them out and expensive. Some states it takes up to six months, that's six months you are still making mortgage payments, six months that they can wreck the house etc."

Only let them move in early with a fully executed lease and deposit and if you are comfy with the possibility of having to evict.

Dugsmom
03-31-2008, 05:26 PM
I called our realtor today and the first thing he says is that he was going to call me tomorrow and that some things had change. Turns out they wanted to move in rent free!!! The story is their house is pending and they close on their house on the same day as our closing. So if they're buyers back out at the last minute they won't be able to purchase our house. They also don't have the $1000 deposit!!! I told my realtor I was actually calling to let him know that we didn't want anybody to move in and that we were almost sure that our insurance wouldn't cover them so we'd be 100% liable if anything happened to them or to the house. My biggest concern was getting them out if they decided they couldn't or didn't want the house. He says he was just thinking about the insurance thing too and that he had also changed his mind and didn't think it would be a good idea for them to move in early either and he thought it was absolutely ridiculous that they'd want to live in our house rent free and they weren't going to change the utilities over to their name!!! They figured that since they were letting their buyers move into their house early rent free that we should let them move in early rent free.
We talked about maybe letting them move their stuff into our garage a week before closing. And there'd be a clause in the contract the realtor is drawing up stating that we would not be responsible if their stuff gets damaged or stolen. I told him that my husband and I would have to talk about that tonight and that I'd get back to him tomorrow. In the meantime, our realtor will be giving the buyers a call to let them know that they can't move in early.
Thanks again everybody for all your help.

Jessica

Mom in Nevada
03-31-2008, 07:03 PM
Wow! All that is good to know but why didn't your real estate agent know ALL the facts before as he said 'they were really good people and he trusted them 100%'.


You know I think if they had inquired on this board before they let their buyers move in early they might have wised up too! But for heaven sakes, that is quite a stack of cards that is potentially going to crumble. It's not uncommon for a house to be sold on contingency but it does shed a bright red warning light on letting them move into your house Early, with that kind of stipulation (even if they were paying rent).


Imagine if they moved into your house and their house didn't sell, so they lived in your house while their house stayed on the market...and didn't sell and they had to move back to their own house.


I know you must be relieved and I'm relieved for you!

Dugsmom
04-01-2008, 09:08 AM
When they made the offer, we were told they had a house to sell and that was put in the contract. By soon afterwards (like a few days later) we were told they had sold their house. We thought the papers were signed and everything was set to go. Now we are finding out that their house is actually pending...I don't consider a house sold until the day of closing and everything has been signed and the house paid for. they, obviously, consider it sold once an offer has been made. Like I said before, they made our real estate agent put up a sold sign. We are taking back up offers but noone is looking at our house anymore...they consider it sold. I was upset but our agent assured me that the house will still have showings (none so far though). And what if their buyers back out??? What a mess this has turned out to be...I wish we were in town. Another thing that bugs me is they hang out outside of the house as if they are making sure to keep people away. Our agent told us that he was passing by the other day and they were sitting on the steps really upset. There was another car in the driveway and they demanded to know who was in the house. They were waiting for the people to come out...turns out it was the appraiser. Our neighbors told us they hang around the house all the time...kinda like they are guarding it.
I can't wait for all this to be over and done with. It is all getting way too complicated and it's hard for us since we are out of state. We can't do anything but sit here and talk to our agent over the phone which obviously isn't working out.

Mom in Nevada
04-01-2008, 09:21 AM
I am glad you found this site to 'vent'. We can't do much but listen and support you during this ordeal but I am praying for you. When is the close date? Soon I hope.

It's kind of strange to me that your buyers took for granted that you would allow them to move in early (and for free) just because they did it for their buyers. I can't imagine why they did that in the first place.

You know that they are trespassing by sitting on that porch and staying around to 'run off' other interested people.

I know you said that your real estate person said you could take other offers but if you look at your paperwork it probably tells you that another offer would mean the new buyer has to come up really fast with the money, they don't have the luxury and 30-45 days to close. I think under your contract that the current buyers have the upper hand unless someone with a bag of money happens upon your house and wants it badly enough to buy it quickly!

I feel bad for you now but hope that the close is short weeks away (it doesn't sound that way by your previous posts) and that this will be over soon. I can't think of a way to get those stalkers off your property though, I think that's awful how they are acting!!



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