POSSESSION AFTER COE

POSSESSION!

 

It has many times been a last minute monkey wrench in a property closing and as we see short sales closing, there is far less motivation for sellers to move out on COE

and some don't. They typically get no money from the transaction and sometimes don't have the means to move. When they do get a certain amount for moving, they may have to wait for closing to get a check, rent a new place, get a truck and move which might take several days.

Possession is an issue that should be worked out way before closing but seldom is except the usual contract clause regarding possession.

We had buyers last week that closed escrow but the sellers wanted 2 extra days to get out. This all came about at the COE. The sellers agent told our agent that sellers always get 2 days to move. NO, THAT IS NOT TRUE! If they get extra time to move, then it must be agreed to in writing and that would be per Az. law R4-28-1102 J and then add in K.

So in this case, the buyers are suddenly the bosses and demand $75 a day for rent--BUT the sellers claim that $30 a day is enough. So if no deal is made, then the sellers have contractually agreed to move at COE. So our agent asks if we can call the Sheriff to take them out of there.

The answer is NO--the sheriff only acts on court orders. So the buyers would therefore have to initiate a forcible detainer action in court, obtain a judgment and then execution of the action, if necessary, by the sheriff. This probably takes 3 or 4 weeks. Does this damage the buyers--I would think so and they need to consult with an attorney to recover their damages.

But, as happens in so many cases, the sellers move in a few days and no further action is necessary except the recovery of damages. (In this particular case, they signed the agreement for $75 a day)

However, the buyers probably need to take the necessary steps to begin the removal of sellers and start the process immediately when they don't vacate the property.

The preceding scenario is not something that we can predict accurately but it is sometimes a factor in any closing of property. 

Consider the factor of possession when the contract is written.

Also be sure of what is included in the purchase and take pictures of it all--even the window coverings, fans, appliances and so on.

Last week, we had a potential switcheroo nearly happen but it was discovered in time and the agents set it straight. The sellers had new appliances and the old ones were in storage.

And something else--if you sell a house that has one of those "contractor lok-boxes" please know and remember that every thief in town knows the codes to these things, so this is even more reason to take pictures of whatever is included in a sale.

Need questions answered on "stuff" like this?

Call and ask for Broker help! We are happy to help you.

 

 

BEGIN--THE REST IS EASY

Bob Stephens  CRB  e-PRO

Managing Broker

West USA Realty