Trying to sell house...buyers backing out.

[MHSweb79]

This happened to us in RI many years ago. The buyer essentially got cold feet and backed out. The realtor (a very good one) told us that since the sale was contingent upon inspection, he could essentially back out for any reason, even something like the back deck needed painting or one of the roof shingles was chipped. I asked about keeping the deposit but was advised against raising a stink to keep it. (It wasn't that much and we hadn't started packing).

It seems like this couple would have backed out regardless of the radon level since they seem to have other issues. Your inlaws might want to have a lawyer look over the contract to see what recourse they have in keeping the earnest money. In this case, unlike ours, the seller really did suffer some losses and deserve to keep the money.

 

[LadyBeBop]

OP's family needs to be getting advice from their realtor. However, considering the two offers etc.. I think that perhaps they are trying to save the fee and do this themselves?

Nope. They have a Realtor.

 

[OrangeCountyCommuter]

Nope. They have a Realtor.

So what does the realtor say? They probably have a better idea of what your parent's options are then most of us.

 

[EMAW_KSU]

In Kentucky and Ohio, the seller is allowed 30 days to vacate. Stuff happens right before the close.

I do not think I could ever purchase a house if the owner had possession 30 days after close.

 

[kymom99]

This may not be something you want to accept right now, but eventually you and your parents may realize it. It may be for the best that you are not selling the house to this buyer. My husband was married before and when they divorced they sold their house. This was many years ago so laws were different.

The guy who ended up buying, didn't put anything in the contact about inspections. Three days before closing, the realtor said they wanted inspections done, and my husband's realtor said if you can do them in 3 days, that's fine, otherwise you are in breach of contract. Well, they should have let them do them. After the sale, the guy found termite damage and sued my husband and his ex wife. She refused to give a deposition or appear in court and they lost. She promptly filed bankruptcy and my husband was responsible for all of it. It was 4 years of wage garnishments before the whole thing was discharged and in the meantime their was a lein against his name so after we married I couldn't even refinance my house. It was a nightmare. So look on the bright side. This could have turned into a legal mess if these people had bought and had buyer's remorse.

 

[barkley]

I do not think I could ever purchase a house if the owner had possession 30 days after close.

our mortgage company would not have permitted it b/c the loan was strictly for an owner occupied dwelling. I wouldn't think of it b/c I've heard the horror stories about being a landlord dealing faced with evicting someone (which if you rent back you have put yourself in the position of being)

 

[crisi]

This may not be something you want to accept right now, but eventually you and your parents may realize it. It may be for the best that you are not selling the house to this buyer. My husband was married before and when they divorced they sold their house. This was many years ago so laws were different.

The guy who ended up buying, didn't put anything in the contact about inspections. Three days before closing, the realtor said they wanted inspections done, and my husband's realtor said if you can do them in 3 days, that's fine, otherwise you are in breach of contract. Well, they should have let them do them. After the sale, the guy found termite damage and sued my husband and his ex wife. She refused to give a deposition or appear in court and they lost. She promptly filed bankruptcy and my husband was responsible for all of it. It was 4 years of wage garnishments before the whole thing was discharged and in the meantime their was a lein against his name so after we married I couldn't even refinance my house. It was a nightmare. So look on the bright side. This could have turned into a legal mess if these people had bought and had buyer's remorse.

A friend of mine won her lawsuit on the house she sold, but it still cost her thousands in legal fees and two years of wondering if she was going to be out 1/3 of the price of the house.

(In her case, cats has used the upstairs as a litterbox and soaked the carpet and pad - and unfortunately, the subfloor....it was pretty obvious when you were in the house the house that there was a significant cat issue - which is why she won - the judge basically said "you bought a house that smelled like cat pee, you should have suspected it might take more than new carpet and pad." It was bargain priced for that reason.)

 

[flateacher]

Radon is naturally occurring (as others have pointed out). It seeps out of the rocks around the foundation and into the surrounding basement walls. The radon then gets trapped in the house and can not leave - so the radon levels rise - and are often times higher than the surrounding areas outside.

I know there are ways to fix it and home Radon test kits. I think vents and fans etc. are one fix (but since I live in Fl and don't have a basement I am not sure on this part).

But I teach a whole unit on Radon and Radioactivity and we discuss this very topic with my students. Like a pp cited - it is one of the leading causes of lung cancer for none smokers. So even though the levels were lower - the buyer might have panicked (or just used that as an excuse to get out of the contract).

So sorry this is happening. It has happened to us several times (moved 4 times). Each time a better more stable offer came it. I am hoping this is the case for you!

 

[JanaDee]

I do not think I could ever purchase a house if the owner had possession 30 days after close.

I wouldn't buy a house if someone was able to live in my house for free for 30 days.

 

[Hofmanns4]

It must be a rent back deal. There is no way I would buy a house and let someone live there for free for 30 days. It does not sound legal either. We have had to rent back for 2 weeks once and it was up to the buyer to agree to rent back. If they said no, we would have had to be out upon closing. This is in AZ.

Sent from my iPhone using DISBoards

 

[rachael95]

When we bought our house, it was a first-time buy for both of us. We ended up buying from an owner, no realtor involved. How we wish we had been smart enough to have a buyer's agent when we found out the owners had no selling agent!

We at least did inspections and all that, but what we didn't realize was that we needed to do a final walk through with ALL THEIR STUFF OUT before closing.

They had asked us very nicely if they could wait until after closing because the house they were building wasn't quite done and their moving van was going to be the next day. So we did a final walk through with their stuff still in the house. When we went to move in after closing, we discovered that their furniture was hiding two giant (1 foot diameter) holes in the walls and a giant hole in the living room carpet.

Luckily, I'm fairly handy so was able to repair the walls and we decided to go for hardwood in the living room to replace the carpet a couple years later. But it taught us a lesson.

 

[jerseygal]

We ALWAYS do our walk through AFTER everything is moved out....
We cross fingers that all is ok, but if not, negotiation then begins at the closing table, which isn't fun!

Neither of us is very handy, so we would wind up hiring someone which is an added expense.

 

[lost*in*cyberspace]

I do not think I could ever purchase a house if the owner had possession 30 days after close.

If you're not in a big rush to move in, why not? This is extremely common.

They don't live there for free; you charge rent.

 

[rottiemom]

When we bought our house, it was a first-time buy for both of us. We ended up buying from an owner, no realtor involved. How we wish we had been smart enough to have a buyer's agent when we found out the owners had no selling agent!

We at least did inspections and all that, but what we didn't realize was that we needed to do a final walk through with ALL THEIR STUFF OUT before closing.

They had asked us very nicely if they could wait until after closing because the house they were building wasn't quite done and their moving van was going to be the next day. So we did a final walk through with their stuff still in the house. When we went to move in after closing, we discovered that their furniture was hiding two giant (1 foot diameter) holes in the walls and a giant hole in the living room carpet.

Luckily, I'm fairly handy so was able to repair the walls and we decided to go for hardwood in the living room to replace the carpet a couple years later. But it taught us a lesson.

OMG, us too! I prefer to think of us as "trusting" rather than stupid . Bought from the owner, didn't do a walk through & let them rent it back to us for 30 days. When I think about it now I cringe. No huge damage, a few cracked mullions but we walked into the BR to discover that at one time it had been wallpapered. The previous owners had painted OVER the wallpaper and AROUND the furniture (it's OK, they painted over the shelf paper in the cupboards too). We had to vacuum underneath the stove top because it was so gross. We also discovered lots and lots of stuff that was done to make the place look good but wasn't done with any sort of longevity in mind. Lesson learned here too.

I swore that if we ever bought another house we'd check every outlet, window and door, flush every toilet, lift every rug...

OP, good luck. Let us know what happens with your folks. Unfortunately up until the closing goes through nothing is final.

 

[donkeyandshrek]

I work in real estate. It is very common for possession to be 2 weeks to 30 days after closing. Happens ALL the time around here

 

[Hofmanns4]

I work in real estate. It is very common for possession to be 2 weeks to 30 days after closing. Happens ALL the time around here

But the buyer has to agree to it and the seller would pay the buyer, right?

I know it happens a lot here too, but the original post sounded like they had 30 days free.

 

[JanaDee]

I work in real estate. It is very common for possession to be 2 weeks to 30 days after closing. Happens ALL the time around here

We have always (and will always) stipulate the house is empty as of closing. If that isn't agreeable to the sellers, we move on.

 

[gunner2010]

We have always (and will always) stipulate the house is empty as of closing. If that isn't agreeable to the sellers, we move on.

Here in NY same way.. you can write into the contract to extend the time to hand over the keys, BUT you need to pay the seller solid money to happen.

Again, NY, but you walk the house the day of closing with your agent and inspect the home before you go to the closing.There you hand over keys.

Heck I also have locksmith there with the agent to change the locks right after closing.

 

[barkley]

I work in real estate. It is very common for possession to be 2 weeks to 30 days after closing. Happens ALL the time around here

where we've bought/owned/sold it could happen-but was highly advised against due to landlord tenant laws (which sellers and buyers convert to for rent backs post closing of the sale).

in California (depending on the county), if a rent back situation went bad, the minimum time frame to do an eviction was 4 months. 4 months of paying for your mortgage plus increased homeowners insurance b/c it's a 'rental', and those utilities that many California cities/counties automatically bill to the homeowner upon closing (or place a lien for on the property if there's a failure to pay)-where we owned-water, sewer and garbage to the tune of at least $300 per month. that on top of continued housing for yourself (and the associated rental insurance) for the duration of the eviction process and you could be looking at tens of thousands of dollars down the drain.

if a seller needed extra time to move out then a delayed closing might be accommodated if a buyer was willing.

 

[jerseygal]

We also have the locks changed after closing! You NEVER know how many people out there have keys....
Better to be SAFE than sorry!

Good luck! Hope this all works out for you!