NEVER, NEVER, NEVER let a buyer move into a home before COE!!!

By
Real Estate Agent with Harcourts JADE Properties

I just read another blog which indicated they let the buyer move in 5 days early to take the pressure off a fast move.

I can't think of anything worse. I've been there, done that -- and it was a disaster.

We wanted to accommodate the buyers -- give them time to move. The buyers, their agent, the lenders, everybody said it was a "done deal." No problem. It will close on time.

So, we moved out. Stayed in a rental while our new house was being prepped. Guess what? You know the answer. The home didn't close. It took nearly 10 stressful days until it did close. Plus, many of the costs weren't adjusted so we ended up paying for heat, water, etc. It would have been too burdensome to have escrow re-do everything. What a nightmare. I wouldn't wish this on anyone (well, maybe some people, you know who you are), and I will never again let my clients move in our out before COE.

It's not over 'til it's over.

What are your experiences? or thoughts?

Have a great weekend.

Happy sailing ... _/)

Paul

Comments (4)

Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland
Paul - You know what, you are right - I never recommend that to anyone.  Had a situation that turned into a lawsuit (I work at a lawfirm too).  Buyers moved in 7 days early, then a nightmare happened - when the oil company filled the oil tank, the hose was detached from the inside, and basement filled with oil.  Who is responsible - Seller or buyer??  still in litigation.  Things can happen.
Nov 09, 2007 01:37 AM
Randy L. Prothero
eXp Realty - Mililani, HI
Hawaii REALTOR, (808) 384-5645

I try to never give early occupancy, but have done a couple of times.  The big risk besides the obvious issues like you ran into is once they are they are in they start finding things they don't like and start talking themselves out of the sale. 

The early occupancy agreement is critical.  One thing that you may want to consider in the future is a non-refundable additional deposit.  If they do not close they forfeit the deposit.  Always add a daily rent amount also and require they have proper insurance naming the seller.

Nov 09, 2007 01:39 AM
Mike Klijanowicz
Cummings & Co. Realtors - Perry Hall, MD
Associate Broker @ Cummings & Co. Realtors
It's NEVER over until it's over, EVEN IF THE FAT LADY IS SINGING!  I have also learned that the neogiating doesn't stop until EVERYTHING is signed!
Nov 09, 2007 02:07 AM
John Allegro
Century 21 Catapano Homes - Bethpage, NY

Paul,

I have had that situation but it was done with a short term lease all legal with all the terms and penalties spelled out. The buyer was responsible for all utilities and had to close by a certain date.

As Per Stella Barbour's response:

If the house had a fill line for oil it should have been cemented over. That's a tough one but it can all be covered in a lease.

 

Nov 09, 2007 04:30 AM

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