Homebuying FAQs:What if the Seller Damages the House While Moving Out?

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Real Estate Agent with Henderson, Thornton, Broomfield and Westminster 100026886
http://actvra.in/DNy

When I am working with Home Buyers, they always have questions about the process.  Usually, the questions will be regarding terms they are unfamiliar with, such as Under ContractPossession and Closing DateContingenciesConcessions or Earnest Money.

But there are always questions about more practical matters, too.

This spring, I was working with some buyers who found themselves a great 4 bedroom home for their family.  One of the features of the home that really stood out was the large unfinished basement.  They were excited about the idea of finishing the basement as a huge entertainment area and home theater for the large family get togethers they were planning to host.

The Seller had many pieces of workout equipment in the unfinished basement area, including a pretty extensive set of barbells.  Eyeballing the equipment and the width of the staircase going into the basement, my buyers nervously asked:

What if the Seller Damages the House While Moving Out?  They had nightmare images of moving into their new home and seeing gouges out of the drywall going into the basement....

 

The Colorado Contract to Buy and Sell is very comprehensive when it comes to damages on a property.  There is an entire section devoted to just this question:

You will note that it states "ordinary wear and tear".  This does not mean holes in the walls caused during moving!

 

This section further defines what the Buyer's remedies will be should there be damages including terminating the contract, delaying the Closing Date until the Seller repairs the items, or having the Seller assign Insurance Proceeds to the Buyer.

 

How Can a Home Buyer Know Whether Damage has Occurred?  Great question!  You should always do a Final Walk-Through of a property you are purchasing, preferably on the morning of Closing.  Again, the Colorado Contract addresses this specifically:

 


There are 4 sub-paragraphs in this section addressing types of damage, including fire, malfunction of systems, even condemnation of the property!  Rest assured, the Colorado Contract will have you covered.

Questions about the Colorado Contract to Buy and Sell and the Home Buying Process?  Call me today!  720-341-5235

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Rainer
338,133
Jennifer Prestwich
Henderson, Thornton, Broomfield and Westminster - Henderson, CO
Your Castle RE Colorado

A Final Walk through is critical!  No one wants to argue at the closing table, but it's even more difficult to argue after the closing!

Jun 08, 2012 08:30 AM #4
Rainmaker
274,093
Mike & Eve Alexander
Buyers Broker of Florida - Windermere, FL
Exclusively Representing ONLY Orlando Home Buyers

I have had occasional damage found at walk thru, or the discovery of latent defects that were hidden...like no carpet under the bed, and wall unit, stains where the furniture dye permeated the carpet, holes in the walls covered up with pictures...and even nice designer fans replaced with el cheapo's...

The buyers receive compensation.

 

Eve in Orlando

Jun 08, 2012 09:06 AM #5
Rainmaker
1,397,460
Maureen McCabe
HER Realtors - Columbus, OH
Columbus Ohio Real Estate

Are the sellers always out at the time of closing in your market?

A walk through is very important but we sometimes have to concede and let the seller have a few days possesion after closing.  I think a walk through is still important but damage created by the seller or movers is still an issue for buyers to be concerned about.

 

Jun 08, 2012 09:12 AM #6
Rainer
277,437
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA
- Pierce, King, Kitsap, Thurston, Mason Counties

Jennifer -- you have set forth a very clear explanation for the process of protecting the buyer from decreased value, either accidental, or intentional - as Eve #5 mentioned.

Jun 08, 2012 10:08 AM #7
Rainmaker
235,683
Jenny Durling
L.A. Property Solutions - Los Angeles, CA
For Los Angeles real estate help 213-215-4758

A common problem I see is that the sellers don't move out until right before escrow closes and as mentioned above, some even stay a couple of days after closing.  I've had sellers leave furniture and kitchen cabinets full of food and I get a call from some unhappy buyers. How do you deal with this situation? I end up paying to take care of it so my client is happy.

Jun 08, 2012 10:18 AM #8
Rainmaker
718,951
Pamela Seley, REALTOR®
REALTY EXECUTIVES OTF - Temecula, CA
Seals the Deals in Temecula Valley California

It's best if sellers move before close of escrow and buyers should do a final walk-through. Like you say, Jennifer, if there are any damages the buyer can withhold closing until they are remedied. This is the best way to deal with this, in my opinion. Allowing the sellers to stay after close of escrow presents problems, as Jenny #8 duly notes. Thanks for your post today,

Jun 08, 2012 10:58 AM #9
Rainmaker
430,648
Adam Brett
The Adam and Eric Team - Fullerton, CA
The Adam and Eric Team, Setting the New Standard

A walk through is such an important part of the process; almost a must. Great Post!

Jun 08, 2012 11:21 AM #10
Rainmaker
314,220
Sandy Acevedo
951-290-8588 - Chino Hills, CA
RE/MAX Masters, Inland Empire Homes for Sale

Hi Jennifer, great post! Final walk throughs eliminate a lot of problems and IMHO extremely important.

Jun 08, 2012 11:54 AM #11
Rainmaker
342,766
Lloyd Binen
Certified Realty Services - Saratoga, CA
Silicon Valley R since 1976;408-565-8177

Jenn, sounds like the CO contract has worked this potential problem through, but it can become another sticky wicket.  Timing sometimes prevents a walk-thru after the seller moves out and before closing/recording.  We used to have escrow withhold some seller's proceeds, like a security deposit, but escrow doen't like doing that any more because of disputes around its release.  Usually I keep my fingers crossed and haven't had any problems recently.  Thankfully, most sellers out here are really very responsible and repair any move-out damage without being asked.

Jun 08, 2012 11:57 AM #12
Rainmaker
2,146,505
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

Hi Jennifer....the final walk through must be after the movers have finished their job and everything is out of the house.... if they are moving during the closing, there should be a hold back of enough to patch walls and paint...

Jun 08, 2012 12:33 PM #13
Rainmaker
456,860
Kathy Stoltman
Rockwood Realty - Ventura, CA
Ventura County Real Estate Consultant 805-746-1793

Walk throughs are important and "knock on wood" most of mine have not had any real issues and those that did were quickly remedied for which I am really grateful.

Jun 08, 2012 07:29 PM #14
Ambassador
1,294,888
Erica Ramus
Erica Ramus - Ramus Realty Group - Pottsville, PA - Pottsville, PA
MRE, Schuylkill County PA Real Estate

Yes the final walk thru is the time to judge if the seller has damaged the house on the way out.

Jun 08, 2012 08:13 PM #15
Rainmaker
1,121,256
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

The final walk-thru is the key .. It is best to do so when the seller has moved out.. and if at all possible a couple of hour prior to closing.

Jun 08, 2012 08:22 PM #16
Ambassador
1,323,889
Tammie White
Benchmark Realty, LLC (615) 495-0752 or www.TWRealtyGroup.net - Franklin, TN
Franklin TN, South of Nashville

I have a contract on one of my listings where the buyer wants to do the final walk-thru 48 hours prior to closing. However, my clients won't be moved out at that point. Why would anyone do that? I always take my buyers to the final walk-thru the morning of closing. Then if there's a problem, we can address it there.

Jun 08, 2012 08:44 PM #17
Rainer
199,206
Eagle Ridge Realty
Eagle Ridge Realty - Gilroy, CA
"Our Performance Will Move You!"

Oh man, this is the worst thing that can happen to an agent...  I had a transaction once, representing the buyer, and the seller wanted to save a few dollars by having her 3 sons move the furniture.  All went well until the last item--the piano.  They rolled it across a hardwood floor and left wheel mark grooves on the flooring.  The seller was kind enough to offer to pay for a new floor sanding and refinishing-- at a cost of $2,000.  Two things come to mind in a transaction...  1) Play nice,as we did, and she was glad my client bought the house, and 2) there are just some areas of moving that are not worth cost cutting on.  Moving is one of them...  Always use a reputable, INSURED moving company.

Jun 08, 2012 09:00 PM #18
Ambassador
1,600,717
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 800-610-7253 DRE01267479 - Costa M

Jennifer - This is a valid question and shows why it's important to have a walk through.

Jun 08, 2012 10:09 PM #19
Rainmaker
1,334,753
Carla Muss-Jacobs, Principal Broker/Owner
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% o... - Portland, OR
Buyer Focused ~ Buyer Results

A walk thru prior to closing isn't going to show the condition of the property AFTER the sellers move out, would it?!?   The best clause is the where the condition of the property is what was existing during the contract.  If the "damage" wasn't showing up in the home inspection and documented then it's on the former owners, IMHO.

Jun 08, 2012 10:25 PM #20
Ambassador
1,131,348
Joni Staples
Berkshire Hathaway Home Services - Anderson Properties - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

The only time I really worry about this when they seller moves out of the house AFTER closing. Final walk throughs solve the problem when the seller moves out prior to closing. But when they lease back to the seller a few days to allow them time to move out.... I always worry if they will leave it clean, remove all of their things, etc. So far, thankfully, I have not had and major issues with this.

Jun 09, 2012 08:00 AM #21
Ambassador
1,119,260
Bob Crane
Woodland Management Service - Stevens Point, WI
Forestland Experts! 715-204-9663

Thanks Jennifer, always a valid question and its good that you have a good answer ready for your clients.

Jun 10, 2012 11:42 PM #22
Rainmaker
1,023,186
Adrian Willanger
206 909-7536 TheHomeFunnel.com - Seattle, WA
Profit from my two decades of experience

Jennifer, good questions. I really believe in having a final walk-through, I hate surprises after closing. 

Jul 31, 2014 10:03 AM #23
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Rainer
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Jennifer Prestwich

Your Castle RE Colorado
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