How risky is this - closing on new house before closing on current house

[lecach]

the seller for the house we're in now tried to pull a fast one - less than a week before closing she said that since we were closing on a Friday we couldn't have the keys to the house until Monday when it had been properly registered or something (some kind of paperwork thing).

In the real estate office I work in we do NOT release keys until the deed has been recorded. I wouldn't call it a fast one - its just a policy to protect the sellers.

Also OP just an FYI: in NC, the contract allows either party (sellers or buyers) to delay the closing for 14 days past the written closing date in the contract.

 

[Peachkins]

"The art of the deal." : Let's call it what it is - you're taking advantage of people who likely have no other options at that point (movers paid for, new home purchased or under contract, etc.) by forcing them into concessions that you couldn't legitimately get at the negotiating table after the home inspection. So shady.

Yes. What an awful thing to do to someone.

 

[bankgirl05]

In the real estate office I work in we do NOT release keys until the deed has been recorded. I wouldn't call it a fast one - its just a policy to protect the sellers.

Also OP just an FYI: in NC, the contract allows either party (sellers or buyers) to delay the closing for 14 days past the written closing date in the contract.

I don't understand this! We were required to show proof of homeowners insurance prior to closing, so if I am insuring the home that my bank just financed, why can't I have the keys? The deed may or may not be recorded for several days, depending on the day of the week, and how SLOW the title company is. But I still have a signed contract, and the seller still has a signed contract as well....

 

[disneymagicgirl]

We have always gotten our key at the closing too. Even if it is 5pm on a Friday.

 

[lecach]

I don't understand this! We were required to show proof of homeowners insurance prior to closing, so if I am insuring the home that my bank just financed, why can't I have the keys? The deed may or may not be recorded for several days, depending on the day of the week, and how SLOW the title company is. But I still have a signed contract, and the seller still has a signed contract as well....

In NC the deed is usually recorded the same day unless the closing is late in the day. In some counties (like Mecklenburg) they have electronic recordation so it can be done from the attorney's office. Of course even with this policy, most sellers will agree to release keys if the buyers loan has funded. But we do have many that will NOT until they get word from the attorney that it's a done deal.

 

[rbork]

To answer OP- if you can afford two mortgages, then close prior to the sale of your current house.

After reading the reply regarding negotiating at the closing table. I will be sure to increase the amount of deposit and to specify certain clauses in my future real estate transactions. For example should the buyer change his mind, he forfeits his hefty deposit. I have put down exceptional deposits before as a sign to the buyer that I am completely serious. As for the banks, they can indeed hold up or cancel a closing and there's nothing you can do about it. But a buyer that assumes his seller is over a barrel...

 

[lucyem]

We were in a legitimate situation like this and were up against a wall so we had to close.

We were moving to another state. A month before we moved we found out my mother had just a few months to live. We closed on our old house, rented it back for a week, moved our stuff out and came to our new state to close. The closing got pushed back from 8:30 Monday morning to 4:30 Monday afternoon. Our stuff was to be delivered 8:00 AM Tuesday morning. At closing the sellers handed us a check for $300 and said they discovered a water problem when they moved some stuff in the basement. What the heck? We didn't know what to do (I was an emotional train wreck at the time and just couldn't think it through). We took the $$, and closed because we didn't know where we'd put our stuff, where we'd live while it was being ironed out, who to call to fix it, who to have move our stuff once it was all settled.

It ended up costing nearly $2000 to fix. Ouch! Wish we would have been able to hold out to get the repairs made at their expense. They had us over a barrel. We put our stuff in the house the next day, unloaded a few boxes and closed the door behind us. Went to be with my mom who passed way 4 weeks later. Horrible time in our lives.

What should have happened is that the lawyer held money in escerow until the repairs were made. Selller paying for the repairs in full.
Once repaird they get the rest of their money. Ive seen this done many times especially for issues found at the walk thru.

 

[Jaya]

1) OK, I will admit to a sneaky little ploy.
2) We have moved seven times due to job promotions and job changes.
3) Twice, we thought the seller was unreasonable during negotiations.
4) The seller would not budge enough.
5) So, AT THE CLOSING TABLE for we asked for reductions.
6) In both cases, we saved mega-bucks.
7) No seller wants to have the buyer back out at the last minute.
8) They are afraid it will take a long time to relist, show, and close the second time.
9) It is a great little tactic.

And you're PROUD of yourself? Wow. There's a name for people like you, but I'd probably get in trouble for saying it. Let's just say that karma can come back to bite you in the behind. I'd be looking over my shoulder, if I were you.

 

[Jaya]

the seller for the house we're in now tried to pull a fast one - less than a week before closing she said that since we were closing on a Friday we couldn't have the keys to the house until Monday when it had been properly registered or something (some kind of paperwork thing).

That's a good way for things to "disappear" from the house between closing and actually getting the keys. Happened to a friend. They did a last inspection of the house on Tuesday, closed on Wednesday, but didn't get the keys until Friday. The closet organization system by then had "walked" out of the house, along with the shelving in the garage and there was a different (cheaper) chandelier in the dining room. They would have had to take the seller to court to get the stuff back or damages and decided just to write it off as "experience" for the future.

 

[Good Morning Dewdrop]

That's a good way for things to "disappear" from the house between closing and actually getting the keys. Happened to a friend. They did a last inspection of the house on Tuesday, closed on Wednesday, but didn't get the keys until Friday. The closet organization system by then had "walked" out of the house, along with the shelving in the garage and there was a different (cheaper) chandelier in the dining room. They would have had to take the seller to court to get the stuff back or damages and decided just to write it off as "experience" for the future.

wow that's awful!

lecach thank you for the info - I felt it was a fast one because the seller didn't mention that fact until a week before closing. IF she had said that up front either we would have bought elsewhere or could have made other arrangements for a closing day (as I recall we closed Friday morning but it might have been early afternoon - it was 8 years ago).

Like a PP I feel that if I've paid my money and signed 8000 documents and insured the house it should be mine at the closing - keys handed over etc. Now I know to ask questions next time we move (which if DD has her way will be to Central FL in about 4 1/2 years )

 

[Alesia]

1) OK, I will admit to a sneaky little ploy.
2) We have moved seven times due to job promotions and job changes.
3) Twice, we thought the seller was unreasonable during negotiations.
4) The seller would not budge enough.
5) So, AT THE CLOSING TABLE for we asked for reductions.
6) In both cases, we saved mega-bucks.
7) No seller wants to have the buyer back out at the last minute.
8) They are afraid it will take a long time to relist, show, and close the second time.
9) It is a great little tactic.

1) What is wrong with you?
2) You should be ashamed of yourself.
3) You certainly shouldn't be bragging it.

 

[TRICKY_TINK]

We sold our home in New York and rented the house to the buyers until they could close. One of them got laid off and we had already moved out of state. For us it was no big deal cause it resolved itself and legally if they back out of buying you get to keep the deposit check and we had a 20k one from them. We charged them the cost of all the bills and that worked fine for us. But stuff does happen. I say pay to store your items or rent from them.

 

[ronandannette]

What should have happened is that the lawyer held money in escerow until the repairs were made. Selller paying for the repairs in full.
Once repaird they get the rest of their money. Ive seen this done many times especially for issues found at the walk thru.

Are professional home inspections not a common part of real estate transactions there? Almost all deals are written conditional to Home Inspection here and if issues are found the price of the repairs is agreed by the parties before that condition gets waived. These inspections are done at the sole expense of the buyer and are a standard clause in an MLS contract; if a buyer wishes to forgo an inspection they must sign a legally binding waiver indemnifying both the seller and the realtors. Our contracts also include standard "Duty to Disclose" any defects the seller and seller's realtor should reasonably have been aware of. Failure to do so (with or without a home inspection) can be subject to future legal recovery against the seller and sanctions by the Real Estate Board against the realtor.

 

[TheRustyScupper]

. . . So shady.

1) I sincerely apologize that some of you feel this way.
2) But have you ever
. . . had a car mechanic claim at pickup that it is more than the estimate?
. . . had a doctor say the bill is higher than original guess?
. . . had a home repair contract where costs kept going higher and higher?
. . . has a person you know or saw get a GAC at Disney when not entitled?
. . . had a mover charge more upon arrival due to more boxes than predicted?
. . . had a lease car where you tried to re-negotiate miles at the end of lease?
. . . had a grocer cut meat a little over the 1-pound you requested?
. . . had a dessert on Disney DDP, even though you didn't want one?
. . . had an electric company increase rates to pay for a power plant that was never built?
. . . had a politician promise something that they didn't even try to fulfill?
. . . had an agreement with your spouse that was changed by the other at the last moment?
. . . had a taxi take an extra block or two to your destination?
. . . had a deal somewhere, then found a coupon, then wanted the discount?
. . . had an airline have a delay and not give you compensation for food?
. . . had a request for a comp at WDW even though your problem was that big?
. . . had an occasion to ask a service/repair person to do something extra for you?
. . . had a rental security deposit used by you as the last month's rent?
. . . had a car rental company charge you days later for minor nicks and dings?
. . . had a product shipped or delivered to you far later than the promised date?
. . . had a WDW ressie, found Free Dining, then wanted it added after your original ressie?
. . . etc
. . . etc
. . . etc
3) Deal making occurs up to the time of final payment or contract completion.

 

[CPT Tripss]

Here's hoping the scuppers rusted enough to clog, stop draining and sink the the bleeping boat.

 

[Alesia]

1) I sincerely apologize that some of you feel this way.
2) But have you ever
. . . had a car mechanic claim at pickup that it is more than the estimate?
. . . had a doctor say the bill is higher than original guess?
. . . had a home repair contract where costs kept going higher and higher?
. . . has a person you know or saw get a GAC at Disney when not entitled?
. . . had a mover charge more upon arrival due to more boxes than predicted?
. . . had a lease car where you tried to re-negotiate miles at the end of lease?
. . . had a grocer cut meat a little over the 1-pound you requested?
. . . had a dessert on Disney DDP, even though you didn't want one?
. . . had an electric company increase rates to pay for a power plant that was never built?
. . . had a politician promise something that they didn't even try to fulfill?
. . . had an agreement with your spouse that was changed by the other at the last moment?
. . . had a taxi take an extra block or two to your destination?
. . . had a deal somewhere, then found a coupon, then wanted the discount?
. . . had an airline have a delay and not give you compensation for food?
. . . had a request for a comp at WDW even though your problem was that big?
. . . had an occasion to ask a service/repair person to do something extra for you?
. . . had a rental security deposit used by you as the last month's rent?
. . . had a car rental company charge you days later for minor nicks and dings?
. . . had a product shipped or delivered to you far later than the promised date?
. . . had a WDW ressie, found Free Dining, then wanted it added after your original ressie?
. . . etc
. . . etc
. . . etc
3) Deal making occurs up to the time of final payment or contract completion.

1) You don't have to apologize for the way I feel. Neither do I.
2) Most of your points were just examples of why what you did was morally wrong, but I'll bite...
. . . Yes, but an estimate is just that - an estimate. It is not a guarantee or a contract.
. . . Yes. See above
. . . Nope, but if it did happen, I would think the contractor was pretty shady.
. . . Nope, but if I did it would lower my opinion of them.
. . . No, but if we had a contract I would refuse to pay more than the contracted amount.
. . . Nope.
. . . Of course, and I paid for the extra. They always try to get if perfect, though.
. . . No, but why would that matter?
. . . No, but if they did, I would be pretty unhappy.
. . . Yes, and that's why people are so distrustful of politicians.
. . . No.
. . . Nope, but if it did happen, I would think the taxi driver was pretty shady.
. . . An advertised price? Yes. An actual contract? No.
. . . Yes, but I didn't ask for compensation.
. . . Nope.
. . . Yes, and I paid for the extra service.
. . . No.
. . . No.
. . . Yes, and it's annoying.
. . . No, but Disney absolutely allows that.
. . . etc
. . . etc
. . . etc
3) So your point is that it's okay to take advantage of someone because it happens all the time? Gotcha.

 

[TheRustyScupper]

. . . No, but Disney absolutely allows that

1) I think there has been enough discussion on this.
2) Just one simple point as illustration.
3) The easy example is applying Free Dining after you made a ressie.
. . . you made a contract with Disney for, minimum, a room
. . . you paid a down payment (aka, deposit)
. . . you received verification of the contract (email receipt)
. . . you learned about Free Dining
. . . you, as Buyer, called later and renegotiated the contract
. . . Disney, as Seller, agreed to the proposed contract modification(s)
. . . a new contract was issued (email confirmation)
4) Any way one looks at it, the Seller had the contract terms changed.

NOTE: No one is saying this is wrong. It is up to the Seller to allow
a contract modification. Disney does this to maintain or increase
attendance and resort occupancy, so it is at the Seller's option.

 

[Allison]

1) What is wrong with you?
2) You should be ashamed of yourself.
3) You certainly shouldn't be bragging it.

I don't put much weight into the reality of what some people post. I think some like to stand out in the crowd.

 

[lucyem]

Are professional home inspections not a common part of real estate transactions there? Almost all deals are written conditional to Home Inspection here and if issues are found the price of the repairs is agreed by the parties before that condition gets waived. These inspections are done at the sole expense of the buyer and are a standard clause in an MLS contract; if a buyer wishes to forgo an inspection they must sign a legally binding waiver indemnifying both the seller and the realtors. Our contracts also include standard "Duty to Disclose" any defects the seller and seller's realtor should reasonably have been aware of. Failure to do so (with or without a home inspection) can be subject to future legal recovery against the seller and sanctions by the Real Estate Board against the realtor.

My response was based on the previous poster who mentioned the seller showing up at closing, disclosing a new leak, and handing her $300. The repair ended up costing her $2000. Stuff happens even after inspections. Houses have issues that can show up anytime. Stuff shows up at walk throughs. I guess in that persons situation at least the seller disclosed the issue. I have seen situations where a seller does not pick up all the trash out back, or cannot get a contractor in time to fix issues found in the inspection etc. Not everyone can or is willing to hold off on a closing to have these things done. Sellers can deal with it either by having money held in escerow until they deal with it or they can give the buyer money to deal with it. Depending on the issue and the buyers comfort etc.

 

[crashbb]

I don't put much weight into the reality of what some people post. I think some like to stand out in the crowd.

Bingo!