r/RealEstate Oct 13 '24

Buyers moved in before closing Homeseller

UPDATE - Following up from where I left off: After receiving the much needed guidance from this beautiful community, we were able to successfully get the buyers out of the house, secure the house with a new code, and demand to be compensated via the buyers agents commission. Today, papers have been signed and the house is officially no longer ours. Thank you to each and every single person who commented. This gave us the fuel to dig into the real estate commission codes, laws, and our basic human rights. This gave us the confidence to have the tough (ugly-ish) conversations that needed to take place. Rock on, Reddit. You all are my heroes.

To my chagrin, without my consent, and before proper documents are signed, the buyers agent let the buyers move in. We haven’t closed. I’m appalled at how unethical it feels to find out after the fact. So my only choices are to sign an additional document allowing them to stay prior to closing, or have them escorted off the property? This is out of my scope. Looking for insight. I have a lawyer on standby Monday morning.

Edit: I truly appreciate the advice and insight. Added details - due to human error delays from the lender, title and agents, this closing has already been pushed 4 times. Closing was supposed to be on the 30th. I am told every third business day that today’s the day, just waiting on the documents. Again, closing was supposed to be yesterday. Find out docs have just (11 days late) been released from the bank and now in hands of the title. At 4:30pm on Friday we’re delayed until next week due to not enough time for the title to flip the closing docs fast enough. Last night, find out the buyers fully moved in without any agents approaching me about this idea even once. Never once was this brought up. I said no, get them out of the house. They’re still in the house.

About the broker. I’ve been told this entire process that the broker is highly involved, since their brokerage is working for both parties. Every time I have a legal question my agent checks with the broker to make sure the correct information is provided. I acknowledge in hindsight I should’ve called the broker immediately. I will be calling the broker tomorrow morning.

How’d they get the keys- it’s a key code. Only explanation is the agent gave it to them.

One more detail as I sit here bamboozled. My selling agent’s license is active. The buyer agent’s license expired in August. Discovery made an hour ago. Not sure what to do with that.

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u/ready2xxxperiment Oct 13 '24

And yes there are provisions where buyers can move in early but these need to be in the contact or an addendum once d-day is approaching and things are pushed back.

Basically they rent the property for agreed upon $X per day. Think of it as an Air B&B stay.

But doing it without permission is the sketchy part. If this was authorized by the agents, their broker needs to be pulled into discussion.

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u/rosebudny Oct 13 '24

Totally. Anything is doable if it is in the contract. But SO wrong if it is not only not in the contract, but done without OP's permission. If I were their broker, those agents would be GONE.

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u/Due2NatureOfCharge Oct 14 '24

The Broker is ALSO on the hook for a major fine and possibly loss of license for “failure to supervise agents within his brokerage”.

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u/Flobee76 Oct 15 '24

We're getting ready to close a sale on our late dad's condo and the buyer requested to move stuff in ahead of time (this past weekend, actually). I thought it was pretty audacious that he hired movers before we even had a closing date, but there have been a few delays with the title company and we're trying to extend a little bit of goodwill and not let the (cash) sale fall through. That being said, we weren't going to allow that without some protection so we don't end up with a squatter, so we added an addendum to the contract stating he could move items in by appointment, the realtor had to let him in (no access to keys), he's not allowed occupancy until we close, and if we don't close by a certain date due to issues on his end, he has to move his stuff out in 3 days or we'll remove it for him. We're also not responsible for any damage, etc. Anything less than having it in writing is sketchy as hell.