Question about selling in mainland

5509POSTS

8 years ago

I have most of my logistics all lined up for a move to Puerto Rico with the exception that I still need to sell my place. In a couple of months we plan to put my place in the market and once it sells, head to PR.

My fear is that scenario could occur:
1) We have a solid offer,
2) We ship our stuff
3) We do the last clean up,
4) The buyer backs out after at the last minute and our house is empty and I am living in a hotel room.

What financial guaranties are there to desuade the buyer from changing his/her mind at the last minute?

Anybody has gone thru this or some advice about this issue?
Thanks
Rey

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NomadLawyer Serial expat

693POSTS

8 years ago

Escrow account deposit helps but doesn't cover nearly 100% of the value.

1 member reacted to this post

WarnerW Serial expat

314POSTS

8 years ago

Yeah, not a lot of guarantees Rey.聽 Most offers will include contingency clauses such as satisfactory home inspection, securing the loan, etc.聽 Lots of ways that a buyer can back away from the deal.

My advice is to pack your household items and put them in temporary storage shortly before the scheduled closing.聽 A week in storage won't cost that much -- I would think it would be worth the peace of mind.

2 members reacted to this post

ReyP ViP

5509POSTS

8 years ago

It is just boxes but it is a hassle to put the stuff away and transport them to storage, then have an unknown date for the movers to pick up the stuff and an unknown date for plane tickets and car shipment.

1 member reacted to this post

Nanraughley Active member

70POSTS

8 years ago

We rented an unfurnished apartment for almost a year after the sale of our house. I know your situation is different.聽 Our closing went smoothly, although there was a short delay. The time period in which we rented gave us an opportunity to plan our move to PR without the worry of a house. We decided to give away or sell our furniture and other bulky items rather than ship them. This decision turned out to be a good one since we would have lost everything to Maria anyway. At least we didn't spend money on shipping -- and then lose everything.

1 member reacted to this post

ReyP ViP

5509POSTS

8 years ago

I plan to give as part of the house sale the refrigerator, stove, any furniture they want, snow blower (not much use in PR), and riding lawnmower.

GuestPoster195 Guest

0POSTS

8 years ago

Hi Rey,

Not sure how the real estate law is in your state but there is usually a due diligence period that the buyer can exercise. Here in Nevada it is for 10 days. If the buyer doesn't back out during this time and then backs out after than you are entitled to the earnest money deposit. Also, assuming the buyer is requesting a loan and the home doesn't appraise, even after the due diligence the buyer can still back out. Ask your real estate professional.

1 member reacted to this post

GuestPoster195 Guest

0POSTS

8 years ago

You can also do a lease back from the buyer. Lets say you close the sale of your home on May 1st. You could lease it back for what ever time you would like to get your affairs in order.

3 members reacted to this post

ReyP ViP

5509POSTS

8 years ago

Thanks Freebird, those are things to consider.

Mrkpytn Serial expat

373POSTS

8 years ago

#10

Rey, From my experience you get "earnest money" down. It can be a few thousand dollars and it guarantees that if the buyer backs out of the contract they will not get this money back. This is different than a down payment which is what they will get back if they have not gone past the due diligence date. I had four contracts fall through at the last minute and this is what I have learned in North Carolina.

1 member reacted to this post

Elcalipocho Active member

61POSTS

8 years ago

#11

Rey,
Typical escrows are 30-60 days.
I think by the time you packed and moved out etc.. , that would be past the point of no return for the buyer to backout.
As people mentioned there can be a non-refundable deposit which releases after X days.
Then they may have another 10 days to back out and lose their deposit. After that it should be a done deal and you can prepare for the move and ship your stuff.
Your agent (hopefully a good one) can advise you of the options and structure any counter offer details for your situation.

ReyP ViP

5509POSTS

8 years ago

#12

Elcalipocho wrote:
Rey,
Typical escrows are 30-60 days.
I think by the time you packed and moved out etc.. , that would be past the point of no return for the buyer to backout.
As people mentioned there can be a non-refundable deposit which releases after X days.
Then they may have another 10 days to back out and lose their deposit. After that it should be a done deal and you can prepare for the move and ship your stuff.
Your agent (hopefully a good one) can advise you of the options and structure any counter offer details for your situation.

Sounds good, I guess I should make sure I have a reliable agent and make sure that I express my desires clearly and get them all in writing.

Elcalipocho Active member

61POSTS

8 years ago

#13

Rey,
I double checked with my real estate expert friend.
The time they have to back out is referred to as the contingency period typically 10 days on a 30 day escrow.聽 Usually the deal breakers are financing falls through or some defects were discovered that made the buyer back out.
If the buyer backs out at the last minute they can get sued.

ReyP ViP

5509POSTS

8 years ago

#14

Elcalipocho wrote:
Rey,
I double checked with my real estate expert friend.
The time they have to back out is referred to as the contingency period typically 10 days on a 30 day escrow.聽 Usually the deal breakers are financing falls through or some defects were discovered that made the buyer back out.
If the buyer backs out at the last minute they can get sued.

Very good info, thanks.