With the current economy the way it is right now and foreclosures rolling into the market in waves, I'm sure many of my fellow agents have seen this clause already, but buyers may not have. The importance being, make sure you disclose the following clause to your buyers and the lender they are working with so all parties understand the timetable they are bound by.
Article 10. (Which can vary) Buyer(s) may take possession after the final closing papers are signed by the Seller and the Contract is funded. Possession to the property may not be taken before the occurrence of both transactions stated previously. Any violation will be considered a breach of contract. If the closing does not take place on the originally scheduled close by date due to a Buyer(s) delay, Buyer(s) shall pay a fee of $100.00 per diem to Seller until the closing is completed.
If you have not disclosed this to your buyers, your commission could be at risk. Make sure you set the expections of the contract to both the Buyer AND THE LENDER. If you're working with a lender who you have not used before, make sure they understand that if they drop the ball on their end, they should be the one to foot the bill.
I have had the opportunity to review dozens of bank addendums, I know the "tricks" they hide in the contract. If you are a buyer, please, please, please make sure you are working with an agent who is familiar with both Short-sales and Foreclosures as they require a different skill set than an ordinary transaction.
Joshua Matthews-Keller Williams Coastal Realty-Portsmouth, NH
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