Real Estate Purchase Contracts: Moving in After Closing

Finished at last! The paperwork has all been completed, and you're anxious to move in. It seems like it has taken forever, and finally here you are. But wait. What's that? A delay? Just a little one, what harm can it do?

Sometimes the seller will ask to stay in the property for a time after the closing. As the buyer, you can approve or disapprove the seller's request, but before you make that decision, here are some things to consider.

It can happen, in the last days of frantic activity just before closing, that the seller asks for more time. It could seem reasonable, that they want to clean out the home a little better, or clean up other loose ends related to their own move or the transfer of the property in a clean condition. While the request may seem to be perfectly in order, you must consider it with caution. If you choose to allow the seller to stay in the house after closing, the seller must, at the very least, be required to pay a fee for the additional days, and that part of the contract must be documented.

There must be a definite limit on the time the seller can stay in the property after the signing of the contract, and it must be in written form. A clear agreement or contract addendum containing the details of the post-closing possession for benefit of the seller can be provided by the real estate attorney or, in jurisdictions where attorneys are not necessarily part of real estate contracts, by the escrow officer.

If the seller announces at the time of closing that he or she has to stay in the property longer, it is normally a good idea to delay closing on the home until such time as the seller can clear out or acceptable paperwork has been drafted and signed.

As a buyer, once you complete the purchase of a property, that property belongs to you and is your responsibility. This is true even if it is occupied by another party. If the seller causes a fire on the property, it is your loss. The seller will not have to pay for the loss unless it is included in the post-closing possession agreement, and even then the seller's liability as a renter may be restricted under law.

Additionally, sellers who retain possession of the real estate after closing have less motivation to take care of the property and make needed repairs. When closing on any property, you are accepting the property in the condition in which it stands at the time of closing.

Liability Issues
Whatever occurs to the property after closing is the responsibility of the buyer, regardless of who is actually occupying the property. If a furniture mover scars a wall or the kitchen tile or a window pane gets knocked out, you will have to pay for the repair.

A common problem with letting the seller keep possession of the home beyond the closing date is that items that should remain with the home can vanish between the closing and the time the buyer eventually takes possession of the property. Even when such a thing as this happens, the buyer is responsible for the missing items because they own the property.

As a buyer, you have a responsibility commensurate with your investment in the home. It is in your best interest to insist on possession at the time of closing, or to reschedule the closing until the previous owner has gotten out from the property and can turn over the keys.

Content furnished by your Highlands Ranch real estate experts in Colorado, Automated Homefinder.