14 Hours To Closing

by Teresa Keenan

I arrived home one evening after a long day. I was looking forward to a glass of wine, yoga pants and relaxation.

I received a call from the real estate agent working with the buyer for my listing that was closing the next day. She and the buyer did the final walk through that evening. Her name popped up on my phone and I immediately figured there was a problem, otherwise she would have just texted me.

I reluctantly answered the phone. "Teresa, we've got a problem," were the ominous words she spoke, the words no real estate agent wants to hear 14 hours before closing. "What's wrong?" I asked, slowly. "The sellers aren't even close to being moved out of the house, and we close at 8:30 tomorrow morning," she said. "WHAT?!" I asked, incredulously. 

"The home is still full of furniture. The bed is made up, ready for them to sleep in tonight!" she said. "How can that be?" I asked, mentally reviewing my conversations with the sellers. "I don't know," said the other agent, "but Mrs. Seller was home, which surprised me." 

It surprised me too, as most buyer visits to the home take place without sellers present. The other agent continued, "Yes, she was home, however, she was gracious and kind so it was ok. However, as we walked through, we realized the sellers will not be moved out of the house by 8:30 tomorrow morning. The buyer is very upset, and rightfully so!" 

I was speechless. "I don't know what to say," I told her. "If there is that much stuff left, there is no way they can be out by closing tomorrow. I don’t know why they haven’t moved out. I will call them.”

I sighed, and dialed the seller's phone number. Mrs. Seller answered, and I explained to her what I learned. Mrs. Seller iterated that she was correct. 

"I'm not sure how this happened," I said, hesitantly. "You realize that as of 8:30 tomorrow morning, you no longer own the property and ownership changes hands?" "Of course," she responded, pleasantly. "But," she continued, "no one ever told us that we had to be out by tomorrow."

I was stunned at this response, but mostly at I was stunned at myself. She was correct - no one ever told her. I realized that in real estate, these transactions become second nature to those of us that practice daily. It is obvious to me that when ownership changes hands the seller and their items should be removed from the property. However, to someone who doesn’t sell a house every day, it isn’t obvious. Have you heard what happens when you ASSUME? Well, that phrase was kicking me that night!

Mrs. Seller said because they were moving from the house directly to a condo and closing on both properties the same day, they had nowhere to store their belongings in the meantime. 

Part of the job of an agent is to keep everyone calm and as happy as possible during the transaction. Real estate transactions are fraught with emotions on both sides - agents can help or do serious damage to this. I am cognizant of this - diplomacy is key. I asked Mrs. Seller if they could bump up the time frame of the movers so they could be out of the house sooner. She assured me she would do whatever she could. 

I informed the other agent of this via text. She responded the buyers were extremely nervous about the situation. I went to bed that night, feeling hopeful closing would go well.

The next morning, I arrived at the title company. I could see the other agent and buyer in a conference room. I assumed they were signing loan documents, so I sat in the waiting area. 

The other agent came out and invited me into another conference room. "This isn't a good situation, Teresa," she said somberly. "My buyers are not comfortable with closing this morning knowing the sellers will remain on the property until this afternoon. They are very concerned about liability." I shared the conversation I had with Mrs. Seller. "Mrs. Seller believes they might be moved out by noon," I said. "Would you share that with the buyers?" she asked. "Of course," I said, not sure how to bridge this gap, understanding the buyers were incredibly upset. 

I suppose I'm still a bit of a rookie agent. I've been doing this for 18 months. And due to the scope of issues that come up during transactions, it can be tough to anticipate problems and their solutions.

I walked into the conference room and expressed my apologies. The other real estate agent was correct in her assessment that the buyer was incredibly upset. She was very worried about her liability for the property. She wasn’t comfortable having the sellers and their movers on a property that would now be hers.

I understood her concerns. I realized the possibility of injury was remote, however, she was justified in having and expressing her uneasiness.

David arrived at this time. Hallelujah! David is a great negotiator and fantastic at dealing with people during stressful times – he would help move this forward. We filled him in on the details.

The sellers arrived, and David and I showed them into another conference room. It isn’t uncommon for sellers and buyers to conduct a transaction in separate rooms or at separate times. Real estate transactions are filled with emotion and anxiety. Sometimes keeping parties separate ensures a smoother transaction.

David explained the gravity of the situation. Mr. Seller didn’t quite seem to grasp it at first, and said if the buyers couldn’t accommodate them, perhaps they didn’t need to buy the house.

“This isn’t the time to play poker,” David explained. “This buyer is ready to walk away because she isn’t comfortable with the liability she is taking on – closing while you and your movers remain on the property. And because of the contract you signed, she would be within her rights to do so.”  

Mrs. Seller mentioned again that we didn’t inform them they needed to be completely moved out of the house at closing time. The word “assume” rolled around my head again.

I’m not sure how many times David and I went between the conference rooms that morning. We, along with the other agent, came up with a solution that seemed mutually agreeable to both parties. Closing would be delayed until early afternoon. Documents were signed by both parties; however, funds would be held until the buyer was certain the home was vacant. The sellers would move their items from the home and the buyer would take ownership after. This would allow the sellers time to move, and eliminate liability for the buyer. Sellers were to vacate by 1:30 pm. The closing time was 2:00 pm.

Needless to say, the sellers vacated the property, though it did run past that 1:30 pm deadline, causing a mini-heart attack in this rookie agent.

And the takeaway from this real estate lesson? Assume nothing!