Profile picture for TomMCA

Close of Escrow plus 3

 I am in a contract  for a regular sale in Woodland Hills and term of possession is close of escrow plus 3 and no other addendum for rent back. Agent is telling me this is normal in regular sale. Three days is up tommorow but it doesn't look like they moved out, my questions is what if they' don't deliver keys by tommorow?
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May 08 2011 - Los Angeles
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Answers (21)

Your real estate agent should have explained the coe plus 3 to you.  it's only standard if you agree to it.  refer to the contract, if they are not out within the 3 days, you must speak to an attorney. best of luck
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March 25 2012
+3 situation it is not normal, but if you agreed upon it is in contract. The oonly you can do it is go to sherifs office or contact RE attorney, if they do not leave. Good luck
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March 24 2012
Profile picture for Stina W
I'm just curious what happened to the original poster...?  We are in a similar situation and our realtor also told us escrow + 3 was standard.  We don't have a provision for daily rent if the seller is still there. 

The seller has said they need the funds to move.  We closed on Wednesday and the seller is supposed to be out on Saturday at 5pm but when we did a walk-through yesterday they still hadn't started packing. 

I'm super stressed because we've given notice on our rental (and I'm pregnant) and have contractors booked to start working on Monday.  CAn a 3-day eviction work for us? How realistic is it that they would be out in 3 days? 
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March 23 2012
Charge them a per diem charge and also contact your attorney
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July 18 2011
If they are not out by the end of the 3 days - I would suggest you contact a real estate attorney.

Good Luck!
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May 17 2011
Odd, there wasn't a Purchase Agreement Addendum , which would have more specifically spelled out the "+3 days", of course if you had agreed to bbecome a landlord, then a lease agreement could have been written up.  Once the close of escrow occurs and the deed is recorded, you would officially be a "landlord".  If the tenant doesn't move out it would be up to you to proceed with an eviction process.  Connecting with a real estate attorney would be advised.
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May 16 2011
TomMCA, you never responded to my earlier question, I would like to know if you had a buyer agent, or the agent you referred to, is the Listing Agent.  It makes a world of difference, if not for you now, because it may be too late, but certainly for other buyers who question whether they should get a buyer agent.  A good buyer agent would have prevented this situation.  Please let us know if it is the listing agent who says that "this is normal in a regular sale"
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May 09 2011

The minute the property closes escrow, the buyer (you) became a landlord and the seller became a tenant. Everything that happens after that is covered under Landlord/Tenant laws in California. If the seller does not move out as agreed, you must start the eviction process immediately. As the seller starts to give you excuses as to why they can't move, you are just postponing the inevitable. Most of the time it is just an inconvenience as the seller didn't realize how much time it would take to pack or their new place isn't ready as soon as they thought. BUT if you don't start the process, you may still be asking this question in 30 days and have to start then.

You can start the eviction yourself, but it is usually best to contact an attorney. Most eviction attorneys will send the inital 3 Day notice for a nominal fee, understanding your prediciment and that they probably will not be handling a full evicition. You just want the seller to know you're serious.

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May 09 2011
If not out at end of three days you should contact a attorney.
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May 09 2011
If they are still on-site after the 3-day is up. I would consult a real estate attorney.

Hope this helps.
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May 08 2011
Interesting.  In today's market all extra precautions should be taken as there are so many stressed sellers.  There are more opportunities for difficulties to occur in transfer of keys. 
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May 08 2011
Tom, if they are not out per contract it will be time to consult a real estate attorney. Best of luck to you.
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May 08 2011

A three day isn't going to work because a three day is to pay rent or quit.

Since there is no apparent agreement on the amount of rent, this can get rather sticky.

Not being an attorney, I can only guess that this is a breach of contract... But then again the contract also calls for a PAA, which doesn't seem to have been included.

I sure am glad I am not the agent representing the buyer, LOL!!

Correction below: that would be at 5PM the day recorded, not the day of closing of escrow...

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May 08 2011
That is something you will have to consult with a real estate attorney about any options that are available to you.

There is a link to the California Court System which allows you to ask questions. The link is California Court Self Help Center.

You may simply ask the current resident if they will be moving out on time to get a sense of what lays ahead. 

Sometimes a simply inquiry clears up any misunderstandings... Some people have their plans as where they are going but want to make sure that the tranasaction is really going to close.

Without the PAA, you may have to fight an uphill battle to collect any holdover. I hope that it doesn't come down to that.

Good luck 
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May 08 2011
If they don't leave, then you have to treat them like a tenant. 3 day, then 30 day notice. What a mess! This is not normal. There are provisions for sellers, to stay past the close date, and they are negotiable, but at some point it should cost them at least 100.00 per day until they leave.
Good Luck! Let us know how this turns out.
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May 08 2011
Profile picture for TomMCA
thanks, it is CAR form, since there is no hold over agreement and i am not in possession, can seller couple be considered as tenant and should be evicted??
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May 08 2011

The default of the contract (RPA-CA) is at 5PM on the day of close of escrow. Any holdover is to include the CAR form PAA. This will break down the agreements for any hold over.

It is true that hold over is customarily three days, but it must include the PAA which is noted on the RPA-CA, Pg 3, sec 5B.

Of course this applies only when using CAR forms, which if you are not using a Realtor, they may be using different forms entirely.
Another option that I had an escrow officer do... I was the selling agent and the escrow officer requested that I confirm the home was vacant prior to her recording... Your agent cannot stop escrow; you will have to make that call. One thing to consider, sellers want their money and you want the house, you may want to consult a real estate attorney to see if that is an option due to a possible breach of contract. I don't know what she would have done if it was occupied, but this was something that she seemed to be concerned about.

Good luck, I hope it works out for you.

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May 08 2011
Very good question.  You might want to charge them a per diem.  However, if it's not in the contract you may have a challenge.  Your best bet is to contact a local real estate attorney.
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May 08 2011
Yes, you should always have them moved out and doing a final inspection before close of escrow unless you have a written rent back agreement with them. 

The normal is that they are moved out at 5pm on date of close of escrow (per CAR contract), but of course you always prefer they are out a few days earlier so you can inspect and make sure the house is in the same condition as before.

Hopefully they will be vacating and you won't have to evict.
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May 08 2011
Who is the agent that is telling you that escrow plus 3 "is normal in regular sale", the listing agent, or is it your Buyer Agent?  I hope all goes well with the rest and that you are able to move in timely.
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May 08 2011
Profile picture for wetdawgs
Call your agent.   His/her  job isn't done until you have the keys in hand.  If they aren't out tomorrow, you may have to initiate an eviction process with legal help.  

I'm horrified that the agent allowed you to get in a contract with "close of escrow plus 3".  They don't get our money until we have had a final walk through on an empty house (including CA purchases), and we have written every purchase offer that way.
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May 08 2011
 
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