Took possession, sellers haven't moved

Took possession, sellers haven't moved

Rental Property Investor · Lapeer, MI · Member since 2019 · 57 posts · 118 votes

My son bought his first home, $400k, and took possession, but the Sellers asked for another week to move. For some reason the realtor didn't suggest a lease back to cover this time period so now my son "owns" a house but has not taken possession and was not given the keys. He is a very generous person by nature so I wasn't surprised to hear he is allowing them time to move because he is single, doesn't need to move right away and is busy with work anyway. What is the shortest way to explain to him (without stressing him) that tells him the realtor dropped the ball? Big time. So far I have: 

1. This is a holdover seller situation and the realtor put him in a situation of liability.  

2. Who has insurance on the home while they are moving out?   

3. Who covers any damages that occur to the home during move out? 

I don't know what else to point out. All I know is that the Mama Bear in me is furious. This is in Utah, a state where I bought and sold only two SFRs, but both times were problematic. (The last transaction ended with the disbursement check amount being different from what it said on my closing docs -- I was the seller, I signed first. I didn't notice until I had driven away and when I went back to the title company, everyone else had left the office and the clueless secretary said "Oh, they changed what they wanted to pay because the buyers said they didn't want to pay that much." They changed the dollar amounts on the document AFTER I had signed.) 

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Kit SerrellBusiness Member
Investor · Member since 2021 · 157 posts · 218 votes
3y

Personally, I would contact a local real estate litigation attorney for a free or minimal cost ($100-150) and see what steps they reccommend. Specifically, I would ask if you needed to start the eviction process. Evictions there take several weeks from what I have heard so best to get ahead of it. I would also have him email the realtor and the realtor's broker-in-charge and inform them of the situation and see what they reccomend. 

1. Yes they absolutely did

2. He needs to contact his insurance company and inform them!!! They may need to alter the policy temporaily to make sure he is covered since there is a "tenant" there. 

3. The sellers cover the damage but good luck getting them to pay it. You would have to take them to small claims court and even then you would still have to collect the money post-ruling which could get tricky depending on the laws. 

If you really wanted to you could contact your real estate commission and see what your options are as well. The realtor truly dropped the ball (could definitly argue negligence) and if push comes to shove the real estate brokerage/firm likely has measures to take care of this. They should have done a $0 leaseback or an addendum (depending on how the state's purchase contracts are written). 

Not offering legal advice becuase I am in fact not a lawyer but I was in a situation where a realtor also dropped tha ball when I was first starting out and my attorney said if I end up in a lawsuit the realtor's brokerage has insurance for this purpose and we would name the insurance as a party in the lawsuit and they would handle it that way. That gave me some peace of mind. The realtor ended up handeling it after I basically said (and made it very clearn) this was her mess and according to my attorney she needed to clean it up. I really didnt want to be pushy but thats what I ultimately had to do. 


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  • Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    3y

    He would have insurance on the home since it would start as soon as he closed. He would be out any damages. If there was damages the only way to get reimbursed is asking the former owners or going to court. I don't understand why the agent wouldn't do a lease back or a form to cover everyone, opening a can of worms if something happens. When will the seller be moved out? 

  • Kit SerrellBusiness Member
    Investor · Member since 2021 · 157 posts · 218 votes
    3y

    Personally, I would contact a local real estate litigation attorney for a free or minimal cost ($100-150) and see what steps they reccommend. Specifically, I would ask if you needed to start the eviction process. Evictions there take several weeks from what I have heard so best to get ahead of it. I would also have him email the realtor and the realtor's broker-in-charge and inform them of the situation and see what they reccomend. 

    1. Yes they absolutely did

    2. He needs to contact his insurance company and inform them!!! They may need to alter the policy temporaily to make sure he is covered since there is a "tenant" there. 

    3. The sellers cover the damage but good luck getting them to pay it. You would have to take them to small claims court and even then you would still have to collect the money post-ruling which could get tricky depending on the laws. 

    If you really wanted to you could contact your real estate commission and see what your options are as well. The realtor truly dropped the ball (could definitly argue negligence) and if push comes to shove the real estate brokerage/firm likely has measures to take care of this. They should have done a $0 leaseback or an addendum (depending on how the state's purchase contracts are written). 

    Not offering legal advice becuase I am in fact not a lawyer but I was in a situation where a realtor also dropped tha ball when I was first starting out and my attorney said if I end up in a lawsuit the realtor's brokerage has insurance for this purpose and we would name the insurance as a party in the lawsuit and they would handle it that way. That gave me some peace of mind. The realtor ended up handeling it after I basically said (and made it very clearn) this was her mess and according to my attorney she needed to clean it up. I really didnt want to be pushy but thats what I ultimately had to do. 


  • Real Estate Agent · Albuquerque, NM · Member since 2015 · 542 posts · 193 votes
    3y

    @Cathy Malmrose

    All else aside, your son is essentially a landlord for this time and he could put together a lease agreement immediately (ideally with the help of an attorney), which outlines a security deposit in case of damages, requires the prior owner to obtain renters insurance, who pays utilities and any daily rent- especially a daily amount that’s high if they stay beyond a certain date.

    This would at least cover the primary points in a leaseback.

    I’m curious about when and how the sellers made the request to stay past closing that your son agreed to - was it just between the two parties or was the Realtor part of that conversation?

  • Rental Property Investor · Lapeer, MI · Member since 2019 · 57 posts · 118 votes
    3y
    Quote from @Lydia S.:

    @Cathy Malmrose

    All else aside, your son is essentially a landlord for this time and he could put together a lease agreement immediately (ideally with the help of an attorney), which outlines a security deposit in case of damages, requires the prior owner to obtain renters insurance, who pays utilities and any daily rent- especially a daily amount that’s high if they stay beyond a certain date.

    This would at least cover the primary points in a leaseback.

    I’m curious about when and how the sellers made the request to stay past closing that your son agreed to - was it just between the two parties or was the Realtor part of that conversation?


    I was out of town so it was just my son and his realtor at the closing table. The realtor was there convincing him it was a good idea. The sellers didn't mentioned it until they were at the closing table and it was end-of-day. They asked for "just a few days", then as they were leaving said they'd be out in a week. Closing was on Nov 1st. Now he's saying "they'll be out by the end of the month". He is extremely conflict avoidant, has always been generous, and he trusted the realtor. She is one of the super sweet, soft-voice, always on your side (but will slice you if it gets her a better commission) realtors. Personally, I've been through the process 43 times and I appreciate the ones who at least have a gentle approach up front, but now that she has her commission, she is responding with shame. "Be patient. Moving is hard. If it was you moving, you'd want a break too." My son is in Utah and I've only done 4 homes there, but it was awful. The final home I sold in UT went through a title company where they changed the purchase amount on the closing docs AFTER I SIGNED. The secretary at the title company explained, "Oh, they didn't want to pay that much so they changed it." So... not my first rodeo with both realtors and title companies trying to get away with doing blatently illegal things. I do appreciate the note about the RE agency having insurance. I wish I could have been there for him on closing day. No (explitives deleted) way the realtor would have tried to pull this if she hadn't had a kind, helpful client.
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y

    Your son needs to learn a big lesson to stop him from being so foolish in the future. Maybe this is it...? Nothing you can do about this anyway if he doesn't want to take care of his new property. But I would also be going nuts if this were my son....dang kids!

  • Broker · Logan, UT · Member since 2013 · 1k+ posts · 1k+ votes
    3y

    It doesn't sound like the real estate agent is your path to a solution.  She's trying to talk your son out of his contractual rights.

    You should be communicating directly with the sellers and getting a move-out date in writing.

    Here is the public resource for Utah Evictions There's a form on the site called "5 day notice to vacate to tenant at will"  I've never used it and, not being a lawyer, cannot advise how it will hold up in court.  But hopefully it won't go that far.  Showing you're serious about them moving out is the first step. Then persistently pushing usually moves things along.

    But I'd certainly get them served and start the clock ticking for worst case scenario.

    Good luck!

  • Sarita ScherpereelBusiness Member
    Real Estate Agent · Chicago, IL · Member since 2018 · 659 posts · 376 votes
    3y

    @Cathy Malmrose Even if the seller is still slowly planning on moving out. I would start the eviction process. Just so you're not missing days waiting. I would definitely speak with an Attorney as well. 

  • I​nvestor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes
    3y

    He doesn’t have sellers in a house… he has squatters. That’s how I’d proceed. Granted Utah state laws might be different… but, I’d make sure that is known loud and clear. No “tenant” or former owner language… but only if they are acting like they will stay longer than their 7 day time to rent it back handshake deal…. 

    If the sellers are actually nice respectful people I’d pivot into a leaseback , getting it on paper yesterday. 

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