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March 20, 2007
House closing time?
Can anyone give me any insight into how long it usually takes for a house to close? I'm sure it varies but I'm looking for a general idea. we are tenants in a house currently in contract. The owner nor the realtor will not tell us anything. We know the offer was accepted in Decemeber and an inspection was done early Jan. We have been given some hints that the new owner may want us out in order to raise the rent significantly. We are currently not on a lease. This house went on the market almost a year ago, so this whole process has felt endless to us. No one will tell us anything, but we aren't sure if they are required to? We are justing waiting for a moving van at this point (the owners duplex is in the building). Any suggestions would be appreciated.
Comments
If you know they are selling and you are that worried about it, why don't you just find a new place to live now?
Closing could take a month or it could take three months. It all depends on how much of a rush both parties are in to seal the deal. Our closing took about 3 because we were not in a rush to move.
Posted by: Archie at March 20, 2007 5:23 PM
exactly..save yourself the stress and start looking for something else
Posted by: Anonymous at March 20, 2007 6:11 PM
for what it's worth, we went into contract 10 days after we 1st saw our house & closed 1.5 months later. I think that is fairly fast; we were crazy diligent about moving the whole process along; had a great seller, mortgage broker & RE lawyer.
Posted by: Anonymous at March 20, 2007 6:23 PM
First of all we have looked at other places to move but we really like it here. This is our home-- just because we rent doesn't mean we don't think of it that way. We have two small children and we are really hoping we don't have to move. If we do, then we will deal with that. It just seems unfair to keep us in the dark for so long.
Posted by: anon at March 20, 2007 7:20 PM
maybe they're not trying to be unfair..but ish happens..I had an eager seller..got my mortgage fairly quickly..lawyers did all the paperwork in record time..but we just seem to run in to one issue after another...ended up taking about 6 months to close..
I was, also, a renter and really loved my
home...was not moving by choice...the whole process took so long I was more than ready to leave when I finally closed..the xtra time was good..gave me time to get used to the idea
good luck..I hope you find a space you like as much
Posted by: Anonymous at March 21, 2007 1:14 AM
I see the spot you're in. If you really like your rental, it may be worth it to see if you can stay. However, If the building really sells you can bet that the new owner will want top dollar for that apartment. You really can't expect a deal on that apartment when the new owner paid through the nose for the building. You may want to talk to a broker and find out what similar apartments in your area rent for so you will know what to expect to pay. The new owners will not talk to you about their plans until they close on the building. It could be the case that they don't want to rent that space too. Good luck.
Posted by: Rick at March 21, 2007 7:19 AM
I'm not sure about the legalities of tenants coming with a building purchase, but I think the new owners still have to give you at least 30 days notice before the next rent payment is due.
If the current owners aren't letting on how things are progressing and they haven't asked you to leave, the new owners will only have the right to do so once they actually own the building. If the closing falls, say, on April 3rd and they give you notice immediately, (and if you pay rent on the 1st) you have almost 2 months to find a new place (they have to go by your payment cycle). If they close on March 30th, your notice period could be just the 30 days.
However, I agree with the first comment - if you know it's inevitable and it's causing you stress, why wait.
If the owner won't offer the courtesy of letting you know when you might expect to be booted out of your home (by the way, have you just asked them?), then maybe they deserve to carry a mortgage without the benefit of your assistance.
Posted by: Anonymous at March 21, 2007 7:25 AM
don't know about the timing but you will almost certainly have to move - most buyers want property w/out tenants. seller/buyer/realtor won't tell you becuase they don't have to and also because they don't know when sale will close, so they want you to stick around until then. this sucks but is also a fact of life for renters - has happened to me twice in carroll gardens in last 10 years. good luck with your move.
Posted by: Anonymous at March 21, 2007 7:37 AM
Generally about 3 months to close. Some exceptions as folks have noted. A bummer of a situation though. It's also an ethically tough spot for the buyer. They don't own the house yet so telling you to leave - or stay - is legally iffy. If you leave and the closing's delayed or falls through, the current buyer loses income.
The idea of finding out what your space would rent for on the open market is very smart. Suggest get that number, and you can always talk to the new owner and discuss a rent hike - if that's affordable, appropriate and desirable. Else, if it were me I'd wait 'til new owners are in and see what they say.
Having looked at a hundred houses before buying, it's not atypical for brokers to tell buyers they could get a lot more rental income without it actually being true.
As Yogi Berra said, it aint over til it's over and the fat lady plays ball.
Good luck!
Posted by: John at March 21, 2007 7:40 AM
It took us six months to close our place, mainly due to foot-dragging by the bank and the lawyers. We were pre-approved for a mortgage, made an offer on our house the same day we saw it, and signed the contract two weeks later. We had our ducks in a row, but it seemed no one else did. In defense of the owner (which may or may not be justified), they may not know themselves what's going on...every time we asked what the hold up was re: our closing, no one seemed to know. As frustrating as it may be for a buyer of seller, it's certainly most troubling for you and your family, who might have to find a place on very short notice. My advice-- is there any way you can get a hold of the buyer and ask him/her what they plan to do after the close? I ask because we had the option of having our house delivered vacant, but after talking with the tenant, we decided to keep him on, promising him we'd give him ample notice if we needed him to leave. Five years later and he's still with us...
Posted by: Anonymous at March 21, 2007 8:28 AM
Even if they were open to continue renting to you, they probably need the rental apt in the house empty so they can renovate it at the same time they renovate the rest of the house. Renovations are a given with the new home buyer in Brooklyn. They are unlikely to move into the house "as is". And they'll want to do everything all at once.
Posted by: Anonymous at March 21, 2007 8:41 AM
Everyone telling you that you most certainly will have to move is full of it. I purchased my place and actually liked the fact that one of the tenants had been in the building for over 7 years. That kind of consistency is important for the comfort of having a reliable tenant. I spoke with the tenant prior to closing. She had hoped to stay. After meeting with her, I felt she would be just fine. We negotiated a fair rent. It went up slightly from what she was paying but she was happy to pay it to avoid having to move.
Find a way to get in touch with the new owners and have a discussion. If they plan on renting the apartment, there is no reason why they wouldn't want to talk with you. It avoids the possibility of having an empty apartment.
Now all this is assuming you were a model tenant for the previous owners. Now if you were a pain in the Arse.... Well.... there you have it.
Good luck!
Posted by: NewStoner at March 21, 2007 10:06 AM
I bought a house with a tenant and we kept her as a tenant since the previous owner said she was a great tenant -- and she was. We may have raised the rent slightly, but not by much. Two years later we asked her to move so we could take over the space, but we negotiated with her when she would leave. As the tenant, you do have some power in this situation. We negotiated with our tenant mostly because we liked her but also because we didn't want her to dig in her heels and force us to go through a lengthy eviction process.
Posted by: Anonymous at March 21, 2007 12:15 PM
Always amazed at the lack of communication evinced on posts here. In the 3 re transactions I've done with tenants, I've been up front about it every time. I've also taked with my new tenants before closing and found out their plans--in one case they'd bought a place and needed 3 months more so it was fine with me, they paid rent on their floor while we renovated the other two. They watched our cats for us when we were out etc.
What's wrong with just asking? Most people are not unreasonable, except maybe re lawyers.
Posted by: cmu at March 21, 2007 5:08 PM
The owners are probably in a state of turmoil, but I think that you deserve some information and it is in their interest too to have a smooth transition. You sound like a good tenant who respects the home. What noone wants is a knock down drag out fight which ends in court. That is the conflict resolution method of least resort.
I second what Rick said. What changes with home sales is the carrying costs of the new owner. The old owner will likely be selling at a good profit to the new owner which will have higher costs/ mortgage as a result. As good a tenant as you are, that is going to be a consideration for the new owner. Also whether or not they will renovate, as someone said - that will be an issue too. You may get a good rent hike or an eviction notice. I second the advice of others to check out the marketplace and also to have a heart to heart with your current landlord. Please know that if you do go to court on an eviction (worst case scenario) you may get 6 months from the judge to continue to live there. Know your rights - the new owner doesn't know you and your record, so it helps to be empowered by knowing a little bit about the law. Good luck.
Posted by: donatella at March 23, 2007 6:39 PM
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