Closing...but not taking possession until a week later?

I think this is what is happening to us. We are closing next week but the sellers are going to stay in the house for an extra week.

Anyone have experience with this or any helpful tips?

TIA!

Re: Closing...but not taking possession until a week later?

we talked about this with our attorney because the sellers were thinking this is what would happen with the house we are/were trying to buy.

NYS law allows 5 days to get out after closing.

if they stay longer then that, there is probably $ in escrow for each day they stay past the 5 days. (ours was $250 a day and there was $1,000 put in there for it) my attorney basically told us that on the 6th day, you should go to court and start the eviction process because it takes awhile. at the escrowed amount we had set, it only covered 10 days. by the time the $ runs out they still may not be evicited, but at least it was in the works. If leave on closing day they will not escrow the $. if they stay 1-5 days after closing the $ should be escrowed. when they leave assuming its 1-5 days after closing they would get the entire amount back.

Re: Closing...but not taking possession until a week later?

This happened with us when we closed on our house last year. We did two walk-through's - one the day before the closing and the second the day that we took possession of the house. The sellers were great and everything went smoothly for us. I believe it was in our contract that the sellers had until X date (the date we planned to take possession) and after that point, would have to pay a certain amount per day that they stayed in the house.

Good luck with your closing!

Re: Closing...but not taking possession until a week later?

Re: Closing...but not taking possession until a week later?

This happened to my parents 20+ years ago. The seller apparently did not realize they had to move out after closing In the end, the seller had to pay them rent for the additional days.

Re: Closing...but not taking possession until a week later?

I did not have this but friends of ours did and it worked out fine. I think it was a week or two after they closed that they finally could move in.

Re: Closing...but not taking possession until a week later?

This happened to us as well. We had to stay with my parents that entire week becsuse the closing day was the exact same day we had to be out of our apartment.

They adjusted the oil and the taxes to allow for those 5 days.

It worked out fine. We had to do another walk through the morning we were moving in. They held money in escrow so that if anything was wrong, we would get the appropriate amount. When everything they released the money to the owners.

It was annoying owning a house for 5 days and not being able to take the keys and go enjoy it right away. Instead, we had a team of family members helping us unload our stuff that day.

Re: Closing...but not taking possession until a week later?

We did this too. It was planned--it wans't that they just didn't move out. It was origianlly b/c theirn hosue wasn't move-in ready, but as it turns out their closign was moved, so they needed an extra day anyway.
Money was set aside at closingThey paid us for each day they stayed after closing. There was no grace period. there was a higher fee assigned if they stayed past the extended deadline.

I kind of regret it b/c I could have used the extra week before my lease was up to fix up teh new palce, b/c once all their stuff was out, there was more to do than I realized & because we didn't really do a walk through before we closed (but I think you can-- just request it. I like the idea of doing 2.)

Message edited 12/9/2009 5:53:54 PM.

Re: Closing...but not taking possession until a week later?

Re: Closing...but not taking possession until a week later?

We did this. #1 - get money in escrow. This should be covered in your contract, but get at least 2500 in escrow to be held until you do a second walk-through when you take possession. Do a walk-through before closing and another one right before you take possession.

We didn't have any major problems, but we had a few minor issues. This is why it's good to have money in escrow -- In fact, NO WAY I'd do this without having money in escrow.

We had to do this b/c we would have lost the interest rate we locked in... I'd do it again. It wasn't so bad.

Re: Closing...but not taking possession until a week later?

I know our attorney put a set amount per day that they would pay us past the closing date. And it was a lot per day I can't remember the exact amount 6 year later but it was (according to our lawyer) "significant enough to make them want to be out by closing" - def more than it would cost them to rent a hotel room. And with a time frame limit as well.

Re: Closing...but not taking possession until a week later?

We had this and it was fine. We closed on Tuesday and got the keys Saturday when the seller moved out. It was in our contract that she was paying us for those days.

Re: Closing...but not taking possession until a week later?

We bought a co-op and the sellers had a few days after according to the original contract we signed. They adjusted our mortgage interest and taxes to cover the extra days and we held money in escrow. We did a final walk through on the day they moved out.

Re: Closing...but not taking possession until a week later?