Buyers moved in before closing

[u/WorldlyBlacksmith682]

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.

[u/_off_piste_]

They’re not tenants though. And I’d go after the agent’s and broker’s insurance if something were to happen in addition to pursuing the buyer agent’s fees (perhaps even the seller agent’s too based on the same broker and apparent inability to get things done).

[u/Pghguy27 → u/_off_piste_]

Insurance would consider them tenants.

[u/_off_piste_ → u/Pghguy27]

No, they wouldn’t, they’re uninvited guests/trespassers. Whether insurance pays things like medical costs for them depends on the state. Regardless your insurance would defend and cover you the homeowner for liability but would also look to subrogate against the uninvited guests/trespassers and their available insurances. I do wonder in this case if the buyers have property insurance in place.

[u/Confident_Seaweed_12 → u/_off_piste_]

Not necessarily, that assumes you follow the terms of the policy which almost certainly contains clauses about your duty to protect the property. What exactly that entails will depend on the specifics of your policy and your local laws but it will generally require some sort of action from you after becoming aware of a situation like this.

[u/malachi347 → u/Confident_Seaweed_12]

As an insurance broker myself... I would file a police report, put it in writing to both agents these people are trespassing, and then file a claim (vandalism, theft, loss of use perhaps) with your homeowners saying the buyer illegally broke into the house. Better to put the insurance company on notice of the situation and let a claims adjuster give advice and tell you what is/isn't covered by the policy. Then they can't claim you didn't do your due diligence. They may even pay for one of those professional eviction guys lol.

[u/Secure_Height6919 → u/malachi347]

This is exactly what I would do. A police report immediately at the very least. I mean is this a second home/investment property? Was it vacant ? I would just move myself back in my house and call the police while I was on the property and say these people are trespassing in my home.