Q: We agreed to have the seller of our home stay after closing because they needed more time to move.
They are refusing to pay us the daily mortgage and insurance it would cost us to live in our new home. Can we get out of the deal before we close? We can not afford to extend out interest rate. In order to prolong closing. They only want to pay for the taxes which is about 15 dollars a day.
A: It is customary to pay all costs, including mortgage and insurance. It is customary to deduct it from an escrow which should be large. However, if you have a possession agreement, you are stuck with it. If you have no possession agreement the form contract requires closing with a vacant property. If they do not leave they are in default.
David Lacher agrees with this answer
A:
It is very hard to unwind a real estate deal in the 11th hour if there are no contractual contingencies remaining to be satisfied. Normally some escrow would be held that would be in a sufficient amount to cover all you your expenses. And the full terms of the post-closing occupancy agreement should be spelled out ahead of time.
If the Seller will not agree to fair cost reimbursement terms and an escrow holdback to protect you, then you might have to sue for eviction and for any costs and damages.
If you try to walk away from the deal, you risk putting your contract deposit at risk, because the seller’s Lawyer might be holding that and likely would not return it just for your asking.
Hope this helps. Sorry to be the bearer of not so good news. That’s why I never like holdover situations in residential real estate transactions have
A: If you already signed the contract, then the terms contained in the contract will govern this issue. Read the contract carefully for the answer.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
