Is there anything I can do? Do I have to sign the rental agreement??

Question

I'm closing on my first home scheduled tomorrow at 9:00am the purchase agreement stated that we would close on or before the 15th of Jan, However the sellers will not vacate the property untill Jan 5th I want to be in my new home by the end of the month to avoid paying continued rent where i am now. We have not signed a rental agreement although my real estate agent has presented it to me they did not want to pay but finally agreed to pay until the end of the month and their realestate agent agreed to pay for the 5 days in jan but not after that date. Since the closing is scheduled alreadly do i have to sign the rental agreement? What will happen if i don't?? Can I still Close??

Can I still force them to close if I don't sign the rental agreement?

it was a suggestion from both realators

What will happen if with closing being tommorrow morning if I want to postpone closing until the orginal jan 15th

Answer 1

Here is my rule of thumb:

I NEVER, EVER advise a client to sign a rental agreement, where the sellers will be occupying the home AFTER the closing date.

Ever! I even have a form that I had an attorney to draw up that I make clients sign if they insist on doing so against my advice.

Here is what you are going to run into:

1. Your hazard insurance DOES NOT cover anything but fire b/c it's technically a rental. That includes liability...so if your "tenants" get hurt...who can they sue? YOU!

2. Anything that gets destroyed in the home, post-closing, will be up for SERIOUS debate, as to whether the sellers caused it, it was normal wear and tear, or if it was there when you walked through the home.

3. Sellers cease to care about how they take care of a home, once the closing happens, and they are still in the home.

4. If they are not out by the agreed upon date, you have to take them to court for an eviction, and you have to give them a 30-day notice...just like any other landlord.

5. Sellers tend to NOT clean a home anywhere near as well when they move out post-closing, as they do pre-closing. I have seen them shove everything in the attic that they don't want....and guess what you have to do? Take them to court of you want clean up charges.

6. You don't get to do a walk-through of the home...EMPTY before you close....I have seen area rugs pulled up that have BLACK hardwood floors from pet stains (THOUSANDS of dollars to replace)....if this was revealed in a walk-through, you can say the sellers knew about it, failed to disclose, and make them pay at closing. Post closing? It's up for debate how the stains got there.

You see the trend here????????

Once you have closed on the home, as a buyer, you have lost ALL of your leverage by allowing a seller to stay in the home post-closing.

HUGE, HUGE, HUGE mistake, and it is ALARMING on how many so-called Realtors don't understand the dangers of it.

Answer 2

You do not have to sign the rental agreement. Sorry but if they expect to live there without paying after the close of escrow, they are taking advantage of you. Either move the closing to when they are out of the property or change the purchase contract to include a "rent Back" that way the amount of the rent is considered in the closing and you will get a credit (credit to the buyer). In addition you need to add an addendum to your contract stating that the sellers will have to pay so much for each day the occupy the property after the date of January 5th, so they don't hold over and not pay you. Have it all in writing.

You really should talk to your Realtor about this. He is getting a commission and should explain this to you so you understand everything. This is his job and he needs to know how to handling it and look after your best interest. This sounds really fishy to me. If the Realtor doesn't know the answer than you need to speak to his broker. Do not sign anything you do not fully understand.

Answer 3

For starters, why are you closing without taking occupancy ? Your contract states that you can close on or before January 15 of next year. Who talked you into this early close ?

You're starting off on the wrong foot entirely. As soon as you close and allow the previous owners to rent back from you, you assume the legal stance of a landlord. What WILL you do if these former owners don't vacate as agreed, or if they damage the premises while 'renting' from you ?

If they do not vacate as agreed, your only option is an eviction action, just as with any tenant. Did you by chance agree to this early close at the suggestion of your real estate agent ?

Answer 4

Stipulate before it closes that you want to be moving in at the end of the month and don't want to give the seller the 5 days in January because you need to be out of your rental unit by that time. If it's not good for the seller then don't close.

It's a bit late to be leaving this to the last minute, this is something that should have been brought up at least a week or two BEFORE closing not the night of.

The closing isnt the place to discuss it because the sellers aren't always there at the closing. When I closed I did it separately from my buyers. They closed a week after I did.

Answer 5

You signed a purchase agreement for not later than the 15th of January, so you should have realized that you couldn't count on both the closing and beneficial occupancy happening before the first of the month. You will have to either pay the rent where you are or find temporary quarters for a week or so - perhaps a motel efficiency unit.

Answer 6

rules variety from region to region, yet in my section renters have a best to stay some month or so after being given observe of eviction. After the month, they could be forcibly bumped off. on the topic of amassing the money, it relatively is a small claims court docket undertaking. even with the incontrovertible fact that, there could be some variety of a lein you may carry against their materials, like a mechanics lein against a automobile he repaired. touch city corridor and ask them, or attempt contacting yet another landlord for advice.