Most home-buying contracts successfully reach closing, with just 6% of all purchase agreements terminated and only 12% of contracts resulting in delayed closings. Once you've closed on your home, you become the official legal owner of the property and the seller no longer has any right to it at all. Unfortunately, sometimes the former owner may not want to leave right away, or may not be able to do so — which can create a lot of headaches.
Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake. Here's what it is and 3 simple steps to fix it ASAP The tax breaks in Trump's 'big beautiful bill' expire after 2028. Here are 4 moves to make before the window closes Let's pretend, for example, that Kara just bought her very first home, but the seller, Marcus, negotiated with Kara to stay for 30 days after closing.
Now, Kara paid her money a month ago, has taken title to the house and is dealing with a former owner who won't leave despite the fact that 30 days are up. The big question is, what are Kara's rights as the new owner and how can she get Marcus out of the home for good? Unfortunately, experts say it may not be so simple.
As Kara is finding out now, she may have made a mistake when she agreed to allow Marcus to stay. "When you purchase a home, you're really just transferring title and the goal is to do that 'free and clear' from any encumbrances," Barry E. Janay, Esq., a real estate lawyer and founder of The Law Office of Barry E.
Janay, P.C., told Moneywise. Unfortunately, that's not what happened here. Instead, Janay said, "in this scenario, there's a tenant or holdover." Essentially, when Kara allowed the former owner to stay, this decision may have created a landlord-tenant or occupancy relationship, depending on state law and the terms of the agreement — which were hopefully laid out in a post-closing occupancy agreement that became part of the purchase contract.
If Kara and Marcus included a clause in that document giving Marcus the right to remain on the premises, then the terms of their agreement will dictate what happens next. Jonathan White, managing partner at the real estate firm Jordan & White, LLC, told Moneywise that a post-closing occupancy agreement might characterize Marcus as a tenant or a licensee. If Kara and Marcus had no written agreement, but Marcus was allowed to remain temporarily and then stayed longer than he should have, many jurisdictions treat him as a type of holdover occupant.
Extract — continue reading at the source.
