Pleeeease Can My Buyer Move in Before Closing; Somethings Never Change
In Maryland it is called "Pre-settlement Occupany" and without the agreement of the seller and the agents it can't happen. In my opinion, this is never a good idea and can lead to all kinds of problems. Say the lender is incompetent and the loan can't close then the seller is faced with the difficulty of evicting a family. In Maryland, if they don't move out willingly, the seller has to file for eviction in the courts and if the weather is cold and snowing the court may not grant the eviction until the weather improves. Or, the seller has to wait while the buyer applies for another mortgage with a more reputable lender and wait for it to close. And, what if the buyer trashes the house on their way out? What if they don't live in it gently then the seller has to make repairs and improvements after the buyers have moved out and perhaps even lower the value of the home.
Having been involved in the real estate industry for over 26 years I have seen and experienced a lot. Both the good and the not so good. I have seen pre-settlement occupancies work out well and I've seen them end disastrously: mostly the latter.
With all the talk about hot technology gadgets, social media, mobile devices somethings in real estate never change. Knucklehead agents is one.
The scenario is always the same: The listing is vacant; the buyer's lender (now called "incompetent") needs more time to approve the loan and the buyer needs to move out of their current rented residence because they gave a 30-Day Notice to Vacate too soon.
The knucklehead agent calls and pleads: "Pleeeease Can My Buyer Move into to your listing before the close of escrow? They have no where else to go. Their lender is incompetent."
Buyers, of course, want to minimize double payments-- their current rent plus the new mortgage--so they try to time the termination of their current rental and the close of escrow too closely. I blame their knucklehead agent who apparently didn't pre-warn them about this common problem--loan processing is slow and subject to unexpected delays.
So they plead with me, the listing agent, to allow the buyer move into the house before the close of escrow. I feel sorry for the buyer even though they, or more likely their agent, brought the problem on themselves.
It happens so often I have consulted with attorneys and here's what they say: why should my client, the seller, jeopardize anything due to the buyer's mistake? Would the seller have agreed to an early occupancy and possession if it had been requested in the original purchase contract? No, so why change it now? Weird stuff happens; lenders go bankrupt, buyers cause property damage through negligence or otherwise; buyer's personal property can be stolen or damaged. Why should the seller change the purchase contract to accept any new risk?"
Of course it's the seller's decision. But the listing agent has an obligation to explain the risks to their seller-client.
So I'm sorry, Mr. Knucklehead Selling Agent, I don't like being unaccommodating. I'd like to be Mr. Nice Guy, but that's not why the seller hired me. Maybe the buyer could move in the with you, Mr Selling Agent, for a few days.
Lloyd Binen
Broker/Realtor/DRE 572654
Certified Realty Services
19200 Shubert Drive
Saratoga, CA 95070-4046
408-373-4411; or e-mail
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