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Posted: 12/17/2002 7:54:25 AM EDT
I need help understanding this. The idea of making settlement on a house is that you do a final walk through of the property, wrap up all the paperwork, whatever money needs to change hands does and finally the previous owners get out. Right? Is it usual practice that the previous owners are given time to move out? I'm not talking a day or two that would almost be reasonable but a week or more? My brother recently bought a house and the previous owners are still living there (about a week now). He originally told me they needed a few days to make settlement on thier new property which I assumed was him just being a nice guy as he doesn't need to be out of his rental until the end of the month. Last I talked to him he told me they had up to a month to move out. Am I missing something? What was the point of having settlement? Surely this is not the way real estate laws work? Does it differ throughout the various states? I appreciate your thoughts on this?
Link Posted: 12/17/2002 8:09:24 AM EDT
When you "close" on a house or property, you own it, and the previous owners do not. Period. It is recorded at the registry of deeds (or whatever that is called where you live) that you are the new owner, and that is that. However, you can write the purchase and sale contract to allow anything that both parties are happy with. It is not unheard of to sell your house and then lease it back from the new owner for a fixed period of time at a rate set in the contract. Or, any other provision that the buyer and seller agree to. I can't say what your brother did, but if he is ok with it, then don't worry about it.
Link Posted: 12/17/2002 8:11:29 AM EDT
Typically, anything over a day or two after closing, there is a lease contract made on the house where the sellers become the "renters" while living your new house. There is also typically a late move-out penalty where the sellers must pay a per day charge for everyday they are not moved out, much like an apartment.
Link Posted: 12/17/2002 8:17:16 AM EDT
If if there is not a contractual agreement as mentioned above then the old owners are now squatters. He needs to follow up with the settlement company. Ed
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