Considerations for Scheduling Your Move After Closing

Finally done with all that paperwork! Everything all signed and sealed, and you're arriving at your new address with curious kids gathering around to have a look at your furniture just like in the movies. Perfect picture of a move day, and exactly on schedule! That's the way its supposed to be.

But wait. Sometimes there's a scene stealer. In some cases, a seller will ask for permission to stay over in the home for a time after closing. You can approve or disapprove the request, but before you make your choice, there are a few angles to consider. It could entirely ruin, not just reschedule, your perfect movie move-in moment.

When There is a Request for Possession Delay
Sometimes just before closing, a seller asks for extra time for the purpose of clearing out of the property, or to take care of other issues on the sale. While the request may seem to be reasonable, a buyer should consider it with extreme caution. If the buyer decides to allow the request for extension, the seller must, at the very least, be required to pay rent for the additional days, and that part of the transaction must be documented.

There must be a limit on the amount of time the seller can stay in the property, and it must be in writing. A clear agreement outlining the details of the after-closing possession by the seller can be drawn up by the real estate attorney or, in states where attorneys are not part of real estate contracts, by an escrow officer and included in the terms of escrow.

The seller may attempt to pressure you by waiting until the last minute and then giving you no time. If the seller announces at the closing or immediately before that he or she has to stay longer, it is usually best to reschedule closing on the property until the seller can vacate the property or the appropriate legal agreement has been drawn up and agreed upon.

Why Does it Matter?
As a buyer, once you purchase a property, it is yours. It becomes your responsibility. This is true even if it is still occupied by another party. If your tenant starts a fire on the property that damages the house, you are fully responsible and you stand accountable for the loss. The renter/seller will have no financial accountability for the damage unless it is specified in the agreement setting forth the terms of the delayed possession.

Sellers who retain possession of the property after closing are less motivated to take good care of the property and make repairs or do maintenance that are necessary. When closing on property, you are accepting it in the condition in which it stands at the time of closing.

Whatever damage that occurs to the home after the closing is the burden of the buyer, without regard to who is living there. So if the pipes start leaking or a window gets broken, you will end up paying for the repair.

A common problem with letting the seller keep possession of the property past closing is that items that should remain with the home, such as window coverings or the air conditioner, can quietly disappear between closing date and final possession of the property. Even in this extreme case, the buyer is responsible for the missing items because they own the property.

As buyer, you assume the responsibility of an investor in the property. It is safest to insist on possession of the property at the time of closing, or to put off closing until the seller has moved out from the house your possession is unhindered.

This article was presented through Automated Homefinder, the ultimate Boulder home experts of Colorado.