Should a buyer allow a seller to remain in the home after the closing?
Usually not a good idea.
The parties enter into what is known as a “Holdover agreement” or “Post-closing possession agreement.” We don’t normally recommend these agreements, but they are sometimes necessary. Hopefully, the following will provide you with some insight as to why these agreements are not normally recommended by our firm:
- The deal gets done sooner rather than later.
- The buyer leaves a hefty sum in escrow to cover “rent” and property damage.
- The seller needs more time to move or refuses to leave as scheduled.
- The escrow money is not enough.
- The seller causes serious damage to the property.
- Legal action is required to recover possession of the premises.
- Legal action is required to resolve a dispute over the escrow funds.
As always, The Law Firm of VAUGHN & WEBER, PLLC is here to assist you. We are conveniently located in the heart of Nassau County, Long Island, at 217 Willis Avenue in Mineola, NY. Contact us at (516) 858-2620 to speak with a real estate attorney.
SELLING YOUR HOME (an Overview)
1. The homeowner usually hires a Real Estate Broker to list his/her property for sale.
Broker– Any duly licensed person, firm, or corporation who for a fee or commission lists for sale, sells, or exchanges real property.
2. The Broker usually conducts a Comparative Market Analysis to help determine the homes value.
Comparative market analysis– An estimate of the value of a property based on an analysis of sales of properties with similar characteristics.
3. The Broker and Seller enter in to a Listing Agreement.
Listing Agreement– A contract between the broker and seller.
The agreement usually includes:
· (1) The parties.
· (2) A description of the property.
· (3) The services to be performed by the Broker.
· (4) The price and terms offered.
· (5) Amount of the commission.
· (6) Duration of the agreement.
· (7) Type of listing- Exclusive, open, etc.
4. There are several different types of listing agreements:
5. Broker finds a buyer. Buyer usually makes an offer by submitting a real estate binder.
Real Estate Binder– An agreement intended to evidence a modest payment toward the purchase of real estate as evidence of good faith on the part of the purchaser and acceptance by the seller. (A real estate document generally used in residential transactions).
6. Seller accepts or rejects the offer.
7. Assuming the offer is accepted, the buyer typically hires an engineer/home inspector.**
8. Once both parties have agreed to move forward, the seller’s attorney drafts and sends a proposed contract to Buyer’s attorney.
9. Contract terms are negotiated by the attorneys.
10. An executed contract and down payment are returned to the Seller’s attorney. Seller signs and returns same to buyer’s attorney.
11. Buyer’s attorney orders a title examination & survey.
12. Once all issues are resolved a real estate closing is set.
Real estate closing– The transfer of the real estate title from seller to buyer according to the sales contract. All parties, as well as a title closer and bank attorney, arrive to consummate the transaction. The buyer receives the title and keys to the real estate and the seller receives the balance of the purchase price.
*The above is merely an overview of a real estate transaction. Additional and/or different steps may be required during a particular transaction. This is not legal advice.
**The inspection can be done after step 10 if the parties agree. This is usually accomplished by placing an “inspection contingency” into the contract.
217 Willis Avenue
Mineola, NY 11501
By appointment only:
East Islip, NY 11730