| Occupancy |
| Home buyers from Chicago, back East or the West Coast often remark on one
of Dayton's most interesting local real estate customs: providing occupancy only after
closing. It seems obvious to them that once you pay for a home you should not only get the
keys but the right and ability to move into it that very same day. But in Dayton, most
buyers are only given occupancy days after closing. What may be the norm in other parts of the country is not the norm here in the common sense Midwest. And the reason it is not the norm here can be summed up in one simple word: practicality. Occupancy at closing may sound logical, but the realities of real estate make it seldom practical. Despite weeks of work and the best of effort, deals can go wrong at the last minute. Literally. Unless the house has been long vacant, the seller has had to move out to make way for occupancy at closing. Now all that effort, time and money has been wasted if the deal is lost. In fact, the seller is twice punished: having lost the deal, the seller now must move back in, or leave the house vacant, with all the worry that implies. In brief: aggravation. So there is a good reason for delaying occupancy until after closing. For a buyer, given the vagaries of movers' schedules, it is reasonable to allow 5-10 days. As a seller, though, it is unreasonable to think that a buyer will let you stay any longer without a rent-back agreement. In this case the seller actually rents-back the house from the buyer for a certain time (30-60 days) on prorated basis of the buyers PITI payments (principal, interest, taxes and insurance). If a seller is to maintain occupancy until after closing, it continues to be his/her responsibility to pay for all utilities for the length of time he/she is in residence. The seller is also responsible for any damages that may occur, or any damages to the buyer that may occur because of failure to deliver possession of the house on the agreed upon date. The buyer, on the other hand, becomes responsible for mortgage costs, taxes and insurance on the house at the moment of closing. Therefore, it is in the buyer's best interest to minimize the time the sellers stay in the house. Moreover, it is important that not only the day of occupancy be stated, but it is wise that the time of day be specified as well. The actual terms of occupancy are something you need to negotiate before you sign the purchase contact. Your REALTORŪ can advise you on our practical Dayton norms -- and spare you much potential aggravation. If you do encounter a problem after closing, contact your REALTORŪ immediately. A Seller does have a legal obligation to deliver the property in move-in condition unless otherwise stated in the contract. If you feel the condition is less than acceptable, call your REALTORŪ! He or she is there for you after the closing as well. A good REALTORŪ is in the business for the long haul and can keep clients (and their subsequent referrals) only if they can address their clients' concerns before, during and after the sale. Granted, what is "acceptable condition" may not be the same to all, but with common sense and common courtesy, both buyer and seller should be able to come to terms, short of legal action. |