Jump to content
Sign in to follow this  
User2011

Closed yesterday with a lease-back agreement

Recommended Posts

Our new house closed yesterday, sellers were funded and the deal is recorded with the state, we own the home.  However, we do not have keys and the temporary lease-back agreement we submitted with our offer (to allow them time to buy their new home after we closed) stated that rent was due at closing.  The sellers did not pay the rent at closing, which I understand from our realtor's law team invalidates the agreement.  

One business day before closing we were told a date they intended to move out and we verbally agreed on it (the original lease back offers a date with added verbiage "or sooner" and we have been very lenient on figuring out when the "or sooner" will be).  On the closing day our agent reached out to theirs to get the lease back addendum and was told that they may need longer (without giving us any firm date).  We explained that their flip-flopping put us in a bad situation, we had an agreement and gave termination notice to the month-to-month lease on our apartment.  As of right now, the sellers are in the home we own, having not paid rent, having no lease back addendum stating when exactly they intend to vacate, and we have no keys in case of emergency, which all makes us very uncomfortable.

What recourse do we have here?  We don't want to throw them out on the street or be jerks about it, but they told us a date and we'd like to hold them to that date.  We're very concerned that we now own the property but the short-term lease back submitted with our offer was invalidated when they didn't hold up their end of the deal and make payment at closing (as far as we can tell, they didn't even try, we haven't heard a word about when they intend to pay us the rent and besides the property address, we have no way to contact them).  I feel like we went into this lease back blindly optimistic and made some serious mistakes in trusting that everything would just go smoothly and now I'm worried about what consequences that blind optimism might have since we don't have a formal agreement that is valid at this point.  We need something in writing, any advice is appreciated.

Location: King County, Washington

Share this post


Link to post
Share on other sites

Your realtor should have been shot for advising you to allow the former owners to remain on the premises.  Why was the first months rent not held in escrow?

 

Your recourse is to file for eviction of the former owners NOW.  This is no time to be nice.  Going through the court process may take months but may be your only recourse.

Share this post


Link to post
Share on other sites

The rent-back amount was supposed "all be handled in escrow" where they pay for the agreed 31 days according to the original document and then we refund any unused days, but for whatever reason it was not part of the escrow.  It was our assumption that we would have the adjusted lease back-addendum as was verbally agreed on the morning before their closing and the rent for the days they need to purchase when they closed.  In Washington the buyers and sellers close on separate days.  We're first time homebuyers so we're fairly clueless and when we signed our end of the deal we figured that they'd provide the check when they signed their end of the deal the next day.  Lease-backs are fairly common in this hot seller's market so we didn't think much of it since it helped us get our offer accepted.

We do have the advantage that I don't think they're trying to be malicious.  Apparently they decided after we verbally agreed on a date for move-out that they wanted to change their loan with their lender on the home they're buying, which would mean they need "a little extra time".  Why they didn't have some inkling that they were considering this before telling us a date, we're not sure.  The trouble is, we made plans based on the verbally agreed date they *just* gave us before closing and since they invalidated the agreement by not paying the rent at closing as was agreed, and since we have not yet been given a new lease-back addendum, we're in a tough situation.  Ideally we'd like to give them to the agreed date, have them pay, and move on, but their agent isn't being responsive and doesn't seem to be impressing upon them the fact that they need to get something in writing or they're at major risk.  We don't want to get nasty, we don't want to evict them, I truly think their intentions are good and they just don't know what they're doing, but at the same time we need to protect our own interests and they are the ones that told us the date that we proceeded with in good faith.

In this situation we're frustrated because it seems that everyone involved except us is downplaying the seriousness of the situation.  We own a home and have people living in it without any rental agreement.  I can't even imagine what legal problems we might encounter if there's an injury or the place burns down or something (we have it insured in our name now) so we're freaking out a little bit.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

×
×
  • Create New...