Help! Seller doesnt want to leave or sign agreement after closing

Katrina Dividina · 2021-06-30T20:27:40-07:00

I need your feedback on our situation. So we closed today 06/30 for a single family home owner occupied about 0.24 acre lot area. The seller told us 5 days ago that she will need to stay until 07/3 to clear up her stuff. We made a post closing occupancy agreement of letting her stay rent free until july 10th, $150/day holdback thereafter and a $1000 security deposit refundable after vacating. She doesnt want to sign it. She said she wont sign the agreement and will leave 7/3. We had a final walkthrough 2 days prior to closing and her stuff doesnt look like she will be leaving soon she also admits she might need more time thats why we are giving her up to 07/10 instead of her request of 07/03. My questions are:Can I ask title company to split closing payout to the seller. 50% or 70% tom after recording then give the remaining after vacating? I asked title company they said they dont do escrow holdback. So its really up to the seller and buyer how to pay each other. The problem is the seller doesnt want to give the refundable $1000. She doesnt want to pay or sign anything. What do you think guys?

John Teachout

Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes

5y

Wow, this is going to be a mess. Don't know what state you're in but you likely are going to have to file an eviction for a "holdover tenant". It may take a while to get her out. It's too late now but you should not have closed with the house occupied.

18 Reply

Katrina DividinaPro Member

OP

Member since 2020 · 34 posts · 28 votes

5y

I agree with you John Teachout. I am smelling eviction here. I signed the closing 330 pm but the recording will yet be tomorrow am. I will call title company tom to probably delay the closing. I think this is a valid reason to delay closing right?
The title company told me earlier that I have to close anyway so I just signed. =c

2 Reply

Katrina DividinaPro Member

OP

Member since 2020 · 34 posts · 28 votes

5y

Im in NM

0 Reply

Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

5y

Then delay the closing until July 3 and make sure you do a walk through to make sure she is out. Call you lawyer and bank and tell them not to transfer the money. Your lawyer should have said something after you did the walk through and she said she wasn't moving until at lest July 3.

2 Reply

Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

5y

Originally posted by @Katrina Dividina:

I agree with you John Teachout. I am smelling eviction here. I signed the closing 330 pm but the recording will yet be tomorrow am. I will call title company tom to probably delay the closing. I think this is a valid reason to delay closing right?
The title company told me earlier that I have to close anyway so I just signed. =c

Yes it is and no you don't have to close. Money is transferred when you get possession which isn't going to happen.

2 Reply

Dustin Allen

Real Estate Agent · South Lake Tahoe, CA · Member since 2016 · 681 posts · 644 votes

5y

@Katrina Dividina

Do you have an agent working this for you? If so, ask if they have any legal consultation service as part of their risk management program.

You might not want to close without an agreement in place regarding the lease back. If there is no additional agreement, your purchase agreement should stipulate the property is delivered vacant upon closing. If that’s the case, you may be able to sue for specific performance instead of an eviction if they don’t leave. I have no idea which is faster or appropriate in your state.

I am not an attorney and you would do well to speak with one about your options as soon as possible. This is obviously going to be a problem one way or another.

2 Reply

Katrina DividinaPro Member

OP

Member since 2020 · 34 posts · 28 votes

5y

Originally posted by @Theresa Harris:

Then delay the closing until July 3 and make sure you do a walk through to make sure she is out. Call you lawyer and bank and tell them not to transfer the money. Your lawyer should have said something after you did the walk through and she said she wasn't moving until at lest July 3.

Thank you theresa. I will call title company and bank early tom. =s I know its going to be a hot mess thats why I consult with a lawyer. But then I feel we need to close. I am time pressured by agent and title company

2 Reply

Katrina DividinaPro Member

OP

Member since 2020 · 34 posts · 28 votes

5y

Originally posted by @Dustin Allen:

@Katrina Dividina

Do you have an agent working this for you? If so, ask if they have any legal consultation service as part of their risk management program.

You might not want to close without an agreement in place regarding the lease back. If there is no additional agreement, your purchase agreement should stipulate the property is delivered vacant upon closing. If that’s the case, you may be able to sue for specific performance instead of an eviction if they don’t leave. I have no idea which is faster or appropriate in your state.

I am not an attorney and you would do well to speak with one about your options as soon as possible. This is obviously going to be a problem one way or another.

Thank You Dustin, I asked my agent and he said they dont have a lawyer but referred me to some available in the area, I had a phone consultation and he gave me suggestions on what to write in the post closing agreement and thats what the agent did. But the seller doesnt even want to sign it. Doesnt want to pay for $1000 refundable security deposit and a 10 day rent free post closing. =c

1 Reply

Dustin Allen

Real Estate Agent · South Lake Tahoe, CA · Member since 2016 · 681 posts · 644 votes

5y

@Katrina Dividina

That’s dumb on the seller’s part. I would delay closing then. I would still consult with the attorney again tomorrow AM to go over options.

Best of Luck!

2 Reply

Joe S.Pro Member

Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes

5y

Originally posted by @Katrina Dividina:

Originally posted by @Theresa Harris:

Then delay the closing until July 3 and make sure you do a walk through to make sure she is out. Call you lawyer and bank and tell them not to transfer the money. Your lawyer should have said something after you did the walk through and she said she wasn't moving until at lest July 3.

Thank you theresa. I will call title company and bank early tom. =s I know its going to be a hot mess thats why I consult with a lawyer. But then I feel we need to close. I am time pressured by agent and title company

The title company and the realtor are not the ones that’s going to have to deal with the mess though. Sure they’ll pressure you to close So they can get paid, but you’ll be left holding the bag.

6 Reply

Katrina DividinaPro Member

OP

Member since 2020 · 34 posts · 28 votes

5y

Originally posted by @Dustin Allen:

@Katrina Dividina

That’s dumb on the seller’s part. I would delay closing then. I would still consult with the attorney again tomorrow AM to go over options.

Best of Luck!

I dont know whats going on with the seller, We are giving her the right as a tenant, she didnt sign so It will make her a squatter if every the closing went thru. But then I will still have to deal with legalities to get her out if she didnt fulfill that 07/03 timeline. Better to delay closing. Thank you so much for all your replies this really validate that I am not being demanding to the seller. Thats how she made me feel. And title company and my agent time pressure me for closing. I know its not gonna be there problem afterwards.

1 Reply

Katrina DividinaPro Member

OP

Member since 2020 · 34 posts · 28 votes

5y

Originally posted by @Joe S.:

Originally posted by @Katrina Dividina:

Originally posted by @Theresa Harris:

Then delay the closing until July 3 and make sure you do a walk through to make sure she is out. Call you lawyer and bank and tell them not to transfer the money. Your lawyer should have said something after you did the walk through and she said she wasn't moving until at lest July 3.

Thank you theresa. I will call title company and bank early tom. =s I know its going to be a hot mess thats why I consult with a lawyer. But then I feel we need to close. I am time pressured by agent and title company

The title company and the realtor are not the ones that’s going to have to deal with the mess though. Sure they’ll pressure you to close So they can get paid, but you’ll be left holding the bag.

I totally agree Joe S. I know that since we went at the final walkthrough. I keep telling my agent its not gonna be there problem. I think he is trying his best anyway its his job. I am thankful I posted here. It validated that I am not wrong if I delay the closing. Cause I really feel I am an inconvenience to everyone involved. =s

1 Reply

John Teachout

Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes

5y

I thought the closing already happened. If it hasn't, don't close. You have a valid reason to delay it and don't be pressed into doing something that's going to hurt you. Based on the seller's unwillingness to leave, I would insist the property MUST be vacant before the closing happens. People will be upset with this decision but you're the one holding the bag if you close and she doesn't leave. And this does happen.

4 Reply

Katrina DividinaPro Member

OP

Member since 2020 · 34 posts · 28 votes

5y

Originally posted by @John Teachout:

I thought the closing already happened. If it hasn't, don't close. You have a valid reason to delay it and don't be pressed into doing something that's going to hurt you. Based on the seller's unwillingness to leave, I would insist the property MUST be vacant before the closing happens. People will be upset with this decision but you're the one holding the bag if you close and she doesn't leave. And this does happen.

I signed the paperworks at 330pm and the recording will be tomorrow. I already texted my loan officer and she said they already funded it this noon. I have to call title company early tomorrow to delay closing and the bank with redate it once im ready.
Thank you so much for your reply. I truly appreciate it.

1 Reply

Bill B.

Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes

5y

Let us know what happens. The seller’s realtor should be working hard as the go between. Maybe they think it will close and they will get paid and walk away. But if you can stop the closing they might suddenly become interested in helping you since they won’t get paid until then.

The couple times I had a seller hold over saying they needed a week or two, I had the title company hold onto $20,000 and a daily rent that escalated quickly after the day they said they would be out. You need a GIANT carrot and a BA stick to get some people moving. You’re already taking chances there’s damage you couldn’t see or damage that will be done during their move out.

Because this seller is uncooperative I would never close until they are out without at least a $10,000 price discount.

4 Reply

Katrina DividinaPro Member

OP

Member since 2020 · 34 posts · 28 votes

5y

Originally posted by @Bill B.:

Let us know what happens. The seller’s realtor should be working hard as the go between. Maybe they think it will close and they will get paid and walk away. But if you can stop the closing they might suddenly become interested in helping you since they won’t get paid until then.

The couple times I had a seller hold over saying they needed a week or two, I had the title company hold onto $20,000 and a daily rent that escalated quickly after the day they said they would be out. You need a GIANT carrot and a BA stick to get some people moving. You’re already taking chances there’s damage you couldn’t see or damage that will be done during their move out.

Because this seller is uncooperative I would never close until they are out without at least a $10,000 price discount.

So talking about the seller's agent, thats another thing. She told the seller that she is now out of the equation since this is "post closing agreement" it will be just between the seller and the buyer now. So shes out! She asked my agent to take her name and company out of the post agreement contract. I dont know. So my agent is talking directly to the seller and is also very pissed that she is uncooperative.

I talked to the title company's escrow officer. They said they dont do escrow holdbacks (which is as advised by my lawyer), i have to get a 3rd party escrow company. My agent told me that title company's that doesnt do escrow holdbacks anymore. I only asked my title company, I didnt checked on other title companies about this. Is that really a thing now?

0 Reply

Bill B.

Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes

5y

I bet you $1,000 if you asked about a “post-closing agreement” before closing the seller’s agent woulda been super helpful. The same as I believe they will suddenly become helpful again if they don’t get their commission check tomorrow.

May try to get your realtor’s broker or even the seller’s agent’s broker involved. Someone who can make decisions and get things done.

If the title company won’t do holdbacks then you come up with a new agreement. The seller credits you $10,000 at closing, you get the cash and agree to bonus her $500 for every day she’s out of the property 20 days after she’s supposed to be out. So if she’s out on time she gets the $10,000. If she’s 10 days late she gets $5,000. 20 days late and you keep the $10,000 and head to eviction/squatter/whatever she is, court.

But again, none of this is supposed to be your job, this is part of the “service” you get for paying 4-6% of the sales price.

3 Reply

Katrina DividinaPro Member

OP

Member since 2020 · 34 posts · 28 votes

5y

Originally posted by @Bill B.:

I bet you $1,000 if you asked about a “post-closing agreement” before closing the seller’s agent woulda been super helpful. The same as I believe they will suddenly become helpful again if they don’t get their commission check tomorrow.

May try to get your realtor’s broker or even the seller’s agent’s broker involved. Someone who can make decisions and get things done.

If the title company won’t do holdbacks then you come up with a new agreement. The seller credits you $10,000 at closing, you get the cash and agree to bonus her $500 for every day she’s out of the property 20 days after she’s supposed to be out. So if she’s out on time she gets the $10,000. If she’s 10 days late she gets $5,000. 20 days late and you keep the $10,000 and head to eviction/squatter/whatever she is, court.

But again, none of this is supposed to be your job, this is part of the “service” you get for paying 4-6% of the sales price.

This is very interesting. But knowing that the seller doesnt even want to pay the refundable $1000 security deposit and is uncooperative. She wont agree with $10,000 credit. Its just better to hold the closing until she leaves. Let her be pissed.
she even said she doesnt care if the house will go foreclosure she wont pay $1000 security deposit. Thats weird.

0 Reply

Bill B.

Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes

5y

Then here’s hoping you can cancel.delay the closing. Let us know. GL.

0 Reply

Charlie MacPherson

China, ME · Member since 2014 · 3k+ posts · 4k+ votes

5y

@Katrina Dividina What a mess. Your instinct to delay or stop the recording of the deed is absolutely spot on. Be as forceful as you need to be to slam on the brakes. I'd start by telling the title company that you have been defrauded and that recording the deed will cement that fraud in place. That might get some action out of them.

As others have said, it's too late to play most of your cards, but I would start the eviction immediately. The rub there is that if you delay recording of the deed, she still technically owns the house so an eviction would likely fail. The flip side of that coin is that if you allow the recording, she gets paid and is a lot less motivated to move.

The agents are probably right in this case. Once the closing has taken place, they're out. The wrinkle is that recording hasn't taken place, but I'm not sure that changes much except that money changes hands at the time of recording. That means that the agents have not been paid yet. Maybe with that extra motivation, they can get the seller's cooperation.

If the agents and title company are pressuring your to close, tell them to go kick rocks. They're looking to get paid and leave the mess up to you.

Do be sure to keep a record of any additional expenses that you incur as well as contemporaneous notes of conversations with the seller, title company and agents. You may need them if this ends up in court.

Good luck. I think you're going to need it.

4 Reply

Jeffrey Donis

Investor · Durham, NC · Member since 2020 · 1k+ posts · 691 votes

5y

I agree with @Theresa Harris and @Dustin Allen. You should consult with an attorney. Try to delay the closing. An eviction might take a while, but it might be your best bet as a last resort.

Keep us posted.

1 Reply

Henry Lazerow

Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes

5y

Forsure delay the closing. Don't close unless there is a holdback of escrow or she vacates. Your attorney can also hold the escrow holdback if title company doesn't want to, I have had my attorney do this for various last minute closing issues in the past. If she doesn't agree then that's a red flag and I would assume an eviction needed and refuse to close.

1 Reply

Joe SplitrockPro Member

Moderator

Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes

5y

@Katrina Dividina I am not sure how you cancel after you signed closing documents. You should have gotten the agreement and money as a condition of closing. The fact that the sellers agent is running away tells me they know she is crazy and want nothing to do with this. If the seller won't even agree to $1000, odds are good they are going nowhere.

I would not extend the agreement to July 10th. I would tell her you expect her and her belongings out by midnight on July 3rd. You will be there to do a walk through. Any belongings left will go into storage. She will need to pay the haul away and storage costs before you release her belongings.

The ONLY way to deal with people like this is taking a hard line. She will be mad and she may yell or act crazy. She may make all sorts of promises, but ultimately it is all BS. She refused your July 10th offer, so the date is July 3rd. HER CHOICE. Don't play games with crazy people, because you will lose.

If she is still living in the property, she could still be seen as a tenant even without a written agreement. You verbally allowed her to stay. If she is living in the property, you may need to serve notice to vacate and evict. If that is the case, do it July 5th and have a process server serve paperwork.

If only belongings are there, you may just be able to remove the belongings and put them in storage. Abandoned property is different than the person occupying the property.

6 Reply

JD MartinBusiness Member

Moderator

Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes

5y

Thoughts:

1. If you've signed already and proceeds have already moved, forget it. You own the house. I don't know anything about NM law but I can't envision a scenario in which you have any legal standing to demand the title company hold the funds or delay the recording. Closings are a two way street - you get the house, but you also get possession of anything adverse that is down the road and the seller gets to take his/her name off the title. You agreed with everything when you closed and funds were disbursed.

2. Never buy a house with a seller still in place without a rent/damage/vacate agreement and some of the funds held in third-party disinterested escrow until the agreement is satisfied. Without that, you're just dealing with an illegal squatter that now has to be evicted through the courts, no different than if some bum had broke in and taken up residence without your knowledge and was claiming tenant rights.

3. There's a saying in life: "Money talks, BS walks". The only real leverage you have over situations in general is money (unless you're really good at guilting people :D). I'm not surprised the seller is in no hurry to leave now; they have their money and you don't have an agreement.

I would get the eviction process started immediately. A verbal agreement to let her stay for 3 days or 10 days or whatever is worth nothing in court, so since she hasn't/won't sign anything get the eviction process moving. Then she'll have that on her record besides. Unfortunately for you, you might be prepared to file a civil/criminal complaint against her for damage once you get this process started (hopefully you have good final walk-through pictures).

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3 Reply

Jason Kudo

Real Estate Agent · Pasadena, CA · Member since 2017 · 276 posts · 255 votes

5y

@Katrina Dividina

Hi Katrina, every real estate agent has access to their state’s Realtor Association’s Legal Hotline. Your agent should be calling this hotline and asking the lawyer for assistance on your part. Make sure to demand this ASAP. You should definitely not be pressured by anyone to close until you are ready and comfortable. I hope you’ve voiced your discomfort?!

2 Reply

Help! Seller doesnt want to leave or sign agreement after closing

Help! Seller doesnt want to leave or sign agreement after closing

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