Final Walk Through
Posted on December 16, 2019 by Nancy Liu | Category: Real Estate
Typically, after the buyer has signed the contract with the seller and the loan is in place, buyer and seller need to set up time and date for closing. The buyer should have a final walk through in the property before heading to the attorney’s office for closing, so buyer can make sure the seller has fulfilled all requirements according to the contact. Such as completion of requested repair, all the retained items and the property itself are still in good condition. If there are still requirements the seller has not yet fulfill, the buyer should insist on working out a solution before the closing. It will be very difficult to make these demands with the seller after closing.
If the seller cannot vacate the property before or immediately after closing, then there would be one more item on your checklist. For example, if a seller wants to stay in the house for a brief period of time after closing, it would be a good idea to sign a Temporary Occupancy Agreement with the seller, charging a small sum of rent per day and make sure the seller does not damage the property. You may request for a deposit if deem necessary. This way, the buyer’s interest will be protected. If the seller still has unfulfilled obligations, such as carpet clearing or repairs, a certain amount of deposit and a written agreement is necessary to guarantee seller fulfill those obligations. The deposit and written agreement ensures the fulfillment of these obligations, and at the same time, the buyer also has the right to supervise these projects to guarantee the quality of work. Note that in order to avoid any dispute, the reserved amount should be fixed in an agreement signed by both parties, and they could pay for a third party to hold the deposit.
Some of my clients did not have a final walk through in the house prior to closing; after they move in they found the seller had taken some items which were promised to stay with the house, such as the chandelier in the living room, mirror in the bathroom, etc. Some clients met the irresponsible sellers who did not repair the air condition as agreed in the contract, and they have to pay for the repairing themselves.
This article is only for your reference. Please do not apply mechanically to any exact cases. You are welcome to consult our attorneys at Liu & Associates, P.C. For contact information, please click here.