Q. Recently we received an offer on our house. We agreed to vacate the house upon “closing”. We closed on our house on a Friday afternoon around 3:00 p.m. However, we did not receive our money until Monday afternoon!! The title company said the lender’s wire of monies was not received until Monday morning. I truly resented having to be out of my house and then letting a stranger move into it before we received our proceeds from the sale. What could have prevented this situation?
A. So sorry for your circumstances! Provisions in the earnest money contract under paragraph 10. Possession has a choice of two boxes to check-one states possession will be “upon closing and funding” while the other says, “according to a temporary lease form promulgated by TREC..”. You could have agreed to stay in your home two days, 7 days, etc. after closing and FUNDING. However, both parties MUST agree.
In your case, there should have been a Buyer’s Temporary Lease Prior to Closing drawn in order to cover any issues that might arise from the time of move-in until the actual funding. Issues could be that maybe the plumbing might flood the house, a tornado might destroy the house (or part of it), fire, etc. This lease spells out what would happen in any of these situations.
Please submit your own questions below! Or visit www.franketeam.com for more information.
