Closing The Deal - Buying.
I have a purchase agreement to buy a SWMH in Ohio. My concern... the owner wants to move to an apartment but has not been accepted. She has a good 2 to 3 weeks worth of packing to do prior to moving.
She wants 30 days after closing to move so that she has the money from the deal to pay the security deposit and 1st months rent for the appartment.
What I did is place the closing date way out (end of January) I told her to apply for the appartment and get her stuff packed. Then when she is approved for the appartment and has her stuff packed we could close the deal and give her 7 days to move out.
I only have $5.00 earnest money in this deal. And potentially $40.00 park application (new park to me)
My question? Do you close deals prior to the seller moving out?
If they say the need the $$$ to move out do you try to work something out or move on to the next deal.
If you do close and now have the title in you name and they do not move out what are the recources. I feel they have no rights to remain in the home as they sold it. My partner feels they would need to be evicted.
Your incites are appreciated.
All I can say is, it pays not to trust. I would not give any funds, especially cash in the scenario you are suggesting. If ou really trust this seller (eyes better be WIDE open) I might consider it if and only if I coud pay certified funds in escrow (meaning you would get 100% of the fund back if she reneged) to the Apartment owner or management company.
Be Careful.
Good Luck,
Shawn(OH)
Coshocton
Thanks for the reply.
I am concerned, as you point out. I guess my question really is.... If I have the title in my name and she refuses to move out.... does she have any legal right to stay in the MH after the contracted time?
Am I fooling myself in thinking that if the title is in my name I hold all the cards... so to speak?
You could try to find out what apartment she's trying to move into. See if you can pay them directly for the deposit and rent. Talk to the manager there and strick up a deal. Pay her anymore monies that is owed to her when she's in the apartment. You could help her move. That way she's out and you wont have to worry about trying to get her out. This is how bad deals start.
Jeff-of,
What you are describing is not that uncommon.
If someone remains 1 day or more beyond the date title transfer then they are a tenant/renter. Agree a rental contract that is clean and obvious. If the person remains beyond the end of the rental agreement you would then evict.
I have done a rent-back a number of times with SFR deals.
If the person is a credit risk and not someone you would rent to then increase the deposit and the rent to reflect the added risk. Make sure your deposit is legal as some areas have restrictions as to the size of any deposit.
An alternative is to change the terms of the deal. Make it seller financed for part of the amount. The seller gets their note paid off when they move out.
John
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