Legalish question about odd home closing request

Discussion in 'The Pub' started by fetishfrog, May 28, 2015.

  1. fetishfrog

    fetishfrog Member

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    So my wife and I are set to close on a house in Colorado at the end of June. The current occupants had requested to be out by 7/2, which was fine. Then they came back and requested to be out by 7/7 and wish to pay rent for a week.

    The contract says they have to be out 7/2. I won't be able to move in until after 7/7, so the timing is not the issue.

    Seems odd to me though. Am I setting myself up to become an involuntary landlord who then has to evict someone? Does money changing hands put me in an odd position?
     
  2. aynirar27

    aynirar27 All You Need Is Rock and Roll Gold Supporting Member

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    Dam. That's a tough one. It feels like one of those times that being a nice guy might really screw you in the end.
     
  3. Steve Foley

    Steve Foley Member

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    Nah, that's not so unusual. I've done it before. The rent is usually handled through escrow. There's a lot happening at moving time, and sometimes all the little details just don't fall into place like everyone hopes.
    Your call. The Contract is 7/2, so that's what everyone's bound by, but if it works for everyone, I'd have no hesitation renting it to them for a few days. It's the "right" thing to do, if it works out for everyone.
     
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  4. VCuomo

    VCuomo Member

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    That's not an unusual request at all. But yes, temporarily you are becoming a landlord. Besides, what are you going to do if you deny their request and they still don't move out on 7/2 (also not uncommon)?

    Best thing, as Steve Foley wrote, is to agree to their request and rent the place for a few days at whatever your cost/day is.
     
    Last edited: May 28, 2015
  5. John Coloccia

    John Coloccia Cold Supporting Member

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    Wouldn't bother me. Stuff happens when you're moving, and sometimes all the stars just don't line up perfectly.

    But you have a real estate agent and an attorney, RIGHT? Why not ask them? None of us knows anything at all about your contract, you situation, their situation, the exact laws in your jurisdiction, etc etc. You're paying an agent and an attorney a lot of money to handle this crap, so make them handle it properly.

    Anyhow, we did a similar thing when we bought our current house. We let the owners keep a lot of their equipment/stuff here for several months after we occupied.
     
    Last edited: May 28, 2015
  6. sundog964

    sundog964 Supporting Member

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    Make sure it is in the closing documents. And have all parties sign it.
     
  7. BadgerDave

    BadgerDave Gold Supporting Member

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    And get a substantial security deposit.
     
  8. BadgerDave

    BadgerDave Gold Supporting Member

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    One potential issue is insurance coverage. If they burn down the house and your insurer finds out you were renting you could be screwed.
     
  9. realtyviking

    realtyviking Member

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    Why don't you just extend the closing date and lower the purchase price by the amount of the "rent"?
     
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  10. Jon C

    Jon C Silver Supporting Member

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    Very common, just be sure it's all documented appropriately including security deposit, time of the essence clause, insurance notification, etc, and all the legal advice (which this is not) from your local attorney.
     
  11. VCuomo

    VCuomo Member

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    If he extends the closing date there would be no reason to lower the purchase price as there would be no rent (the current owners would still be occupying their own house).
     
  12. mge80

    mge80 Member

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    Just an anecdote without any commentary or advice. When we sold our place in Seattle prior to moving here, we ran into a bit of a snag with the movers, so we made a similar request of the buyers. Asking to rent the place for a week. All of this was documented and signed off on to include all the details and particulars.

    While we were living there during that week, my dog (seen in my avatar), who had given us zero indication that he even had it in him, as he'd been perfectly fine in every way, decided to chew one of the steps (carpet, pad, wood, etc...) completely out of the stairs from the lower level to the main level. We had it repaired and they did an excellent job. We even tracked down the builder (we bought it new construction) to get the exact brand, type and color of the carpet. You couldn't tell at all that it was repaired and didn't look any different than any other step throughout all 3 levels. We didn't say anything about it and never heard a word from them, so I gather they never noticed. I would have been very surprised had it been any other way.

    But, it definitely added a level of stress to the move that we certainly didn't anticipate. All's well that ends well, I reckon.
     
    Last edited: May 28, 2015
  13. Crowder

    Crowder Dang Twangler Silver Supporting Member

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    It happens all the time. As mentioned above, it would be good to have some sort of security, and that's usually handled through keeping some money in escrow that won't be released to them until they're gone. The biggest potential problem would be if they refuse to leave, or just don't get out in time for you to move in. More than likely they're just trying to arrange things so they don't have to move twice or have their stuff stored for a week (assuming the place they're heading won't be ready on 7/2).
     
  14. Crowder

    Crowder Dang Twangler Silver Supporting Member

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    Good story, and of course you handled it perfectly. Many people might have trouble adjusting to the concept of being a tenant in a house they have owned for awhile.
     
  15. Paleolith54

    Paleolith54 Member

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    Me too. Quite common.
     
  16. dkals

    dkals Member

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    Write up the agreement between your attorneys. Your charge back to them is = to 1/30 of your mortgage payment per day. Hold back from the closing 2K in escrow for damages and/or your homeowners insurance deductible. Ask your attorney who's insurance will cover catastrophic claim for that week, my guess is they should continue insurance and bring proof to closing.
     
  17. Peteyvee

    Peteyvee Premium Platinum Member

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    This ^^^
     
  18. DustyRhodesJr

    DustyRhodesJr Supporting Member

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    What if they become squatters with lots of legal rights behind them?
     
  19. Matt Jones

    Matt Jones Supporting Member

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    It's been part of the last two home buys I've gone through. If everyone is contingent on their deal going through then there's got to be some give and take. That usually ends up with somebody renting their place back so the deals all line up.
     
  20. Bogner

    Bogner Member

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    Not uncommon, you can write it up and arrange things so you are covered.
     

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