Real estate General topic

[paulsharvey]

"If it were me and I did allow them to hold over, I'd want some language where they are fully responsible for damages, etc. until they vacate-- and until you do a walkthrough after they have vacated and you approve the condition."

the title company is going to hold some funds until it's confirms no damage and clean

 

[ultrarunner]

I’ve done it several times with a Escrow holdback.

Maybe I’ve been lucky but so far ok.

Lenders have limits but the rent back was always to short to kick in.

PITI is what I received (Principal, Interest, Taxes, Insurance) and they paid all utilities.

Only exception was the last purchase where the only reason I was able to get my offer accepted was a generous rent back… up to 6 months at a substantial
rent kicking in month 2.

Often not possible to extend a closing without docs expiring is my experience.

 

[2manyrocks]

"If it were me and I did allow them to hold over, I'd want some language where they are fully responsible for damages, etc. until they vacate-- and until you do a walkthrough after they have vacated and you approve the condition."

the title company is going to hold some funds until it's confirms no damage and clean

Unless there is something already in the real estate sales contract, this requires a whole nuther round of documentation spelling out the terms of the continued occupancy. Otherwise, how much will the title company escrow and what are the conditions under which they will release funds? If there's a dispute, could be all the title company can do is deposit the funds with the clerk of the local court for you to fight over. And there's no assurance that the amount in escrow would be sufficient to cover any of the uninsured loss problems that plowhog mentioned.

 

[paulsharvey]

I’ve done it several times with a Escrow holdback.

Maybe I’ve been lucky but so far ok.

Lenders have limits but the rent back was always to short to kick in.

PITI is what I received (Principal, Interest, Taxes, Insurance) and they paid all utilities.

Only exception was the last purchase where the only reason I was able to get my offer accepted was a generous rent back… up to 6 months at a substantial
rent kicking in month 2.

Often not possible to extend a closing without docs expiring is my experience.

Unless there is something already in the real estate sales contract, this requires a whole nuther round of documentation spelling out the terms of the continued occupancy. Otherwise, how much will the title company escrow and what are the conditions under which they will release funds? If there's a dispute, could be all the title company can do is deposit the funds with the clerk of the local court for you to fight over. And there's no assurance that the amount in escrow would be sufficient to cover any of the uninsured loss problems that plowhog mentioned.

Oh, if they really did a smash and destroy, it wouldn't be enough. For paint touch ups, and maybe a broken window, it would be.

I have a friend that sold and did continued occupancy for like 4 months a while back. No idea what kinda documents they did.


What @ultrarunner is saying is 100% true; because everything is locked in, with dates, and all, earnest money applied to this escrow, ecr; to move it out 15-30 days would involve refunding money, transferring, new contract, ect; or that's my understanding

 

[2manyrocks]

If you don't have an experienced agent who is helping you with this, you might do what plowhog suggested and consult a real estate attorney.

 

[WinterDeere]

No opinion to contribute on the matter, in this particular case, other than to say I've become a big fan of real estate attorneys, in general. In fact, if you were in PA I could recommend one I've worked with in the past.

They are generally not very expensive, about half the hourly rate of my business law attorney. My experience is that they're both more useful and less expensive than a buyer's agent realtor, but in this case Paul is already on that road.

I'd recommend finding a real estate attorney in this case, only if your realtor indicates any doubt or unfamiliarity with this type of situation. For all we know, the realtor may have dealt with situations nearly identical to this dozens of times before, and may already be operating under the advice of an attorney. They may already have a boilerplate contract they use for these scenarios.

 

[2manyrocks]

Post Occupancy | What Is It and Should a Buyer Allow It?

If you are buying or selling a home you may have heard about a post occupancy agreement but what is it and should you allow it?

wellingtonhometeam.com

This comes up enough that there must be a form agreement for it somewhere. One issue that would concern me would be what if they don't move out after 7 days?

This is apparently written by a Florida attorney cautioning what can go wrong unless care is taken to avoid some pitfalls. https://kevinjjursinskilaw.procurro...losing-Occupancy-Agreements-FINAL-3.31.20.pdf

If there is no written agreement as to the post occupancy, there's some indication that it could take 18-24 months in court to get them out.

 

[paulsharvey]

We have the required inspections happening today; foundation certication, 4 point insurance, and some kinda wind inspection. I have mixed feelings; I think they are going to have issues with a porch, and that won't be a graceful or cheap fix, and seller is probably not going to want to do it. It also kinda annoys me that I'm forced to spend $600 on a guy that knows less than I do, just for that independent stamp.

So, I kinda know the back porch roof-overhang isn't constructed to code, and will need redone in the next 5 years; but I can do that Far cheaper than the seller can hire a contractor for. Also, being they discounted a lot from original asking, I imagine they aren't gonna want to do it.

Edit: I don't mean to sound cocky with that one statement, but I know what matters structurally, and what I can make work/fix/repair; but Not what flags something on an insurance inspection or what FHA or mortage companies care about; so on that, the home inspection companies Do know more than me

 

[paulsharvey]

On that back porch; the seller clearly did it them selves, and screwed a 2x8 ledger yo exterior of the house, which is not allowed. My current home, I knew this, and it is an entirely self supported structure, connected to the home only by flashing. The seller also didn't bother with drip edge on the outside, and it's shingles, so you get the water staining and eventually rot on the outside edge of the plywood.

 

[2manyrocks]

Could be the seller is too far into this process to not make concessions to get the property sold especially now that there are more and more saying real estate isn't selling.