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Updated over 2 years ago,
Risk of Possession/Occupancy after Closing?
I am looking for anyone with experience in a similar situation to the one described below. What were the main hurdles? Did the occupant leave before closing? Did the occupant trash the place? What is the best course of action to make the occupant happier so that they don't trash the property (more than it already is)? (Is it best to do nothing? Or would it be better to actually talk to them (they actually live in the same neighborhood as me, but I haven't spoken to them much - the 2 interactions I have had over the past 2 years were positive and the guy would possibly remember who I am if I approached him/knocked on the door - though neighbors tell me that he is deceptive and they advised me not to trust a word he says). Also, I am female and the guy is an old-ish man, so I would probably have my partner with me if I were to approach him.
The situation is that we will possibly be going under contract on a property that is currently in pre-foreclosure (if our offer is accepted). I have reason to believe that a family member of the seller will be reluctant to leave the property. The family member is supposed to have left already and has been actively sabatoging the sale of the property - a previous contract fell through because the family member occupying the property locked out and refused to let any inspectors into the property.
We were lucky and happened to get a showing during a time that the family member was gone (and the door was unlocked - there is supposed to be a lock box with a key for realtors to use, but we suspect the family member to have broken into the lock box to remove the key).
There will be a clause in the contract that states "POSSESSION. Possession of the Property and Inclusions will be delivered to Buyer on Possession Date at Possession Time, subject to the Leases as set forth in § 10.6.1.1. and, if applicable, any Post-Closing Occupancy Agreement.
If Seller, after Closing occurs, fails to deliver possession as specified, Seller will be subject to eviction and will be additionally liable to Buyer, notwithstanding § 20.2. (If Seller is in Default), for payment of $250 per day (or any part of a day notwithstanding § 3.3., Day) from Possession Date and Possession Time until possession is delivered. "
I am considering also getting a consultation with a lawyer, but does anyone know if the occupant of the property would be exempt from eviction since he isn't the Seller and does not have a lease? Also, as a summary of my questions in the beginning of this post, what is the best course of action to increase the probability of a peaceful transition? (i.e. the occupant leaving before closing without trashing the property out of anger).
TIA!