My daughter has a mo. to mo. lease on the property I’m selling. after sale does her rent have to be prorated?
Friday, April 9th, 2010 at
11:42 am
my husband signed a contract april 17th. for sale of property.The agent changed the earnest money from 500. to a 1000. due after A/I, what does that mean? He didn’t Initial one part in the contract so she sent it back for him to do so. I asked her what was the buyer planning on doing with the property she said she didn’t no she would find out. She calls three days later and said she just saw it in the contract and he wants the building vacant. I told her and the attorney that I wanted the contract canceled until june 1st. unless they would agree on her staying until aleast the middle of june. The closing is suppose to be may 20th. At that timewhich i believe was the 21st or 22 of april. the lawyer said she would talk to the sellers attorney and get back with me. she finally called and said they would let her stay and charge her day by day for the cost of te building taxes and Ins. Is this right ? What about the earnest money. I think my agent is working for the buyer too.
Quick Property Sale
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Tagged with: April Lawyer • Earnest Money • Ins • Rent
Filed under: rent property
Eerlijk denk ik u beter zou zijn van het vragen van uw dochter om zich uit op 1 van Mei te bewegen en dit alles te vermijden knoeit. Het zou ruzie en moeilijk kunnen zijn om een huur in zulk een korte bericht te vinden maar zijn met een waarde van de ruzie.
Als zij vanaf 1 Mei aan 1 Juni betaalde en zij bewoog zich uit zegt 15 van Mei toen zij moeten prorate het. ALS zij geen huur ondertekende. Als u een huur ondertekent en u beweegt zich uit alvorens de huur is op en alvorens de huur de volgende maand gepast is u uw geldrug of uw storting niet krijgt.
It sounds fair to me. The money doesn’t have to actually change hands because it can be worked out with the other closing costs at the time of settlement. It shouldn’t be hard to figure out the amount; you already know how much the taxes and insurance costs on the property are. Take those two annual amounts and add them together, divide by 365, and multiply that amount by the number of days it will be before you daughter vacates the house. If you cancel your insurance on the day of closing and because your taxes are prorated according to the settlement date, there will be very little, if any, difference in the amount you get for the house at closing. The earnest money is simply a deposit that goes toward the purchase of the property. They had to put down $1000 in advance instead of $500 so when the sell closes they have already paid $1000 toward the purchase. It makes no difference to the seller. I’m not saying that your agent is working for both of you somehow, but the seller makes more if she gets more money for you. It sounds to me like you need to sit down with your agent and ask questions about the things you don’t understand. Don’t be intimidated, your agent is working for you and you have a right to understand exactly what it is you are paying for.
The buyer has the right to recieve his property vacant. And you as the seller are obligated to have it be vacant at closing, unless the listing specified that there was a tenant and an existing lease. The contract would have to be written ’subject to’ the existing lease. Since your daughter is on month to month, there is no lease. If the buyer is willing to let her stay and have her pay by the day, he is being nice. She needs to get out. Also, keep in mind that his ‘costs’ for the building are going to be different than yours, since he will be getting a new loan for probably more money than yours is, and you won’t know what his interest rate is or payment. So, don’t be surprised at the amount of the daily proration.
Earnest money goes into escrow and is applied towards his down payment.
Your agent must disclose to you if she is representing both parties, so read the contracts that your husband signed.
And find a place for your daughter to live.
Escrow or closing agent will prorate the amount of rent you received for the month that the sale closes. You will be paid for May rent in May. New buyer will get a portion of that prorated to them for the remainder of the month that they take ownership. If there was a security deposit, that will be transferred to the new owner.
The new owner can give their notice after they have taken ownership as to when they want her to vacate the property. The month to month contract stays in place with the transfer of the property. At the end of May, they new owner can make their own lease with her or give notice they are not.
The agent was acting in your best interest to get a higher earnest money from the buyer. I don’t know what A/I is unless it is “Appraisal/Inspection” so it sounds like the buyer will increasing their earnest money from $500 to $1000 once the appraisal/inspection is done? Or the buyer has not yet put any earnest money down but will do so once the A/I has been done?