Expert: Karyn Foley - 8/24/2008

Question
I am a first-time buyer in So Cal and escrow was supposed to close 3 days ago on the short-sale property, but a repair pushed it up for another 5 days. In the meantime, the people are still living there. I got worried and called my agent, who in turn said he called the selling agent. Now, I am told the selling agent is going to ask them if they will accept money to get out. Shouldn't this issue have been worked out long ago? I am concerned because I have signed all the papers (including loan docs.) I do not want to be responsible for getting these people out. And I'd like to be able to move into my new house. I certainly do not want to get stuck paying my rent and a mortgage on a home I cannot occupy. What should I do?

Answer
Dear Helena:  You are in a very vulnerable and highly charged situation that needs immediate legal support and advise.  Your listing and selling agents appear helpless and hapless, and I wonder if you are  being well represented.  Your contract calls for a time when the occupants should be out, and your contract may  have been breached by this, I feel.  I cannot advise you legally as we cannot "practice law without a license".  Even though you signed loan documents, I ask if you have already put in your down payment money.  Your loan may be in jeopardy if you do not close in time.  You may lose the loan, or have a higher interest rate charged to you. You should immediately arrange a meeting with all agents andtheir owners of the office and/or managers.  You need direction, and they are mandated to give that to you.  If you do not resolve this at once, you should let them know you are hiring a real estate attorney who will look towards everyone and see who will be held accountable for this unreasonable and dangerous position you are in.  You may have recourse not to be held to your contract if the attorney finds that the seller did not hold up to their terms of the contract.  It can take a long, long time to remove an occupants, and if you close now before that is accomplished, it would be your time and your money that would be spent. Don't delay.  If you spend any more time on this, it gives everyone the idea that you are OK with this, and you are not and neither am I.  A real estate company's attorney is there to represent the company and the agents, not represent the buyer or seller.  You need your own representative.  If this happened earlier on, your contract calls for mediation and then arbitration, if you signed the latter clause.  Usually, the mediation is written into the contract automatically.  However, you have reached the home stretch, and everyone secretly feels that you want the house so badly that you will just go ahead and hope for the best.  Don't do that!  Let everyone knows that you are serious about legal representation, and that they will be held responsibile for seeing that the contract is fulfilled, monies paid to you for whatever it will cost you, and damages if they happen.  Hurry, and then let me know what goes on and we will take it from you.  I always hate to have to point somne one in the direction of additional support, like a lawyer, but time is not on your side.  Good luck, and please get back to me accordingly, If you are lucky, you may just cause enough of a stir to get every one moving, but the mose important move is the removal of the occupants. Karyn Foley