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Seller Won't Give Up Possession
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| What happens at the end of a sixty day escrow when the sellers aren't ready to move out and ask for a 30 day extension but the buyers refuse? Fortunately, this situation does not arise often. If the agents have done their job of keeping the lines of communication open between the buyers and sellers, then issues like this are usually known and resolved long before the close of escrow. If the buyers are given enough notice that the sellers are having trouble meeting a deadline like this, then usually, the buyers and sellers agree to extend the escrow period for a short time or the sellers agree to pay rent to the buyers for the time they remain in the home after close of escrow. When the issue does arise, then the answer to this question is going to vary depending on the situation. If, 1. The contract provided that escrow would close in sixty days, 2. The buyers are to receive possession at the close of escrow and, 3. The buyers have fulfilled their obligations under the contract and are ready to close in a timely manner, then the sellers need to understand that they are legally bound to perform pursuant to the terms of the contract. While the buyers can't physically come in and start moving the sellers' belongings into the street, the sellers need to understand that their failure to perform may subject them to liability for damages caused to the buyers. In other words, the sellers' failure to perform is probably going to cost them money in some way or another. When it is not possible for the buyers to give the sellers any extension on their possession, then the cost to the seller is that they usually end up putting their belongings in storage and living with relatives, friends or in a motel until their new accommodations are ready. As for the question of how much legally liability do the sellers have for not performing, the wise response is for agents to refer clients to their attorneys for specific answers. |
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