What would you do if you bought, paid for, and closed on a home only to have the seller REFUSE TO LEAVE? It’s more complicated (and possibly more common) than you might think. I’ve got the details and the answers in today’s episode. I’m Carole Ellis. This is episode 78.
So you’d think that once you bought a home, paid the seller for it, and legally closed on the property (with the seller present, by the way), you’d own that property and be able to do with it pretty much as you wish, right? Wrong! As a Nashville homebuyer named Tamara is discovering, it turns out sellers can (and do) go rogue from time to time and refuse to move out of their homes even after they’ve pocketed their profits and signed over their deeds.
I’ll tell you all about what happened and how to prevent it from happening to YOU in today’s episode, but first I want to mention a brand-new podcast that I think you’ll enjoy. One of our very first guests, Alex Pardo, a Miami wholesaler, has started his own podcast all about how he has created a FLIPPING EMPIRE down in South Florida. It’s full of great information, Alex is the real deal, and I think you’ll love it. You can check it out at www.rei.today/alex and please leave him a great review and 5 stars if you feel the show deserves it. I think you will.
Now, back to how a PIRATE SELLER is taking over a home that he already sold. Here’s the deal:
When first-time homebuyer Tamara Holloway purchased her Nashville property, she was thrilled. She put down a down payment, closed on the property, and was ready to move in, but she forgot two CRUCIAL COMPONENTS (as did her lawyers, by the way) when she closed on the home. The result of that oversight is huge: Tamara’s seller won’t get out of the property or let her move in. “I technically don’t have to go anywhere,” he told a local paper, noting that nowhere in the closing documents was there an amendment saying that he had to leave after closing. He remains cloistered in the home, doors locked, and because Tamara doesn’t have any keys (there’s the second oversight, folks) she can’t get in. “They’d have to evict me,” said the pirate seller, adding, “I’m not having that!”
Of course, Tamara has started the eviction process, which she is fully entitled to do because she owns the property and her date of possession was June 1, 2016. Unfortunately, it will probably take about 30 days after the eviction warrant goes out to get the seller out of the home for good, meaning that Tamara will have nowhere to live in the meantime and, perhaps worse, the nasty seller will have plenty of time to trash the home should he choose to do so. He’s already made headlines for yelling things at reporters like “Shut your mouth and learn to take orders,” so it’s anyone’s guess what the home will look like once Tamara finally gets her keys and gets moved in.
What lesson should you take away from this crazy scenario? Well, according to the Greater Nashville Association of Realtors (the GNAR), in a hot market like Nashville, ANYTHING can happen, and you need to make sure to cover all your bases. The GNAR emphasized that the biggest thing you must do is get keys at closing, since if Tamara could have gotten into the home, she would be able to control the situation more effectively. Also, be sure to have a lawyer review your documents for loopholes like the one this seller is using to make sure that you don’t have to go through a formal eviction process just to move into a home that you already own.
Want a complete list of recommendations for how to spot potential pirate sellers and “disarm” them before they start to give you trouble? I’ve got it in the REI Today Vault at www.rei.today/vault, complete with the details about what a local LAWYER said Tamara should probably do to deal with the situation now that she’s stuck in it. Not yet a member? just text REITODAY no spaces no periods to 33444 and I’ll provide you with fast, immediate access to this startling information as well as sending you straight to a treasure trove of trainings, uncut interviews, breaking news coverage, and a lot more timely, insightful information that will help make your real estate investing safer, faster, and more profitable. That’s REITODAY no spaces no periods to 33444 or go to www.rei.today/vault for more information right now.
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REI Nation, thanks for listening in. Now, more than ever, please remember this:
Your best investment is ALWAYS your own education.
Carole Ellis is the host of Real Estate Investing Today, a popular 9-minute daily podcast focused on educating real estate investors about the important topics that will make their investing SAFER, FASTER, and MORE PROFITABLE. She's also the editor of the Bryan Ellis Investing Letter. She has more than a decade's worth of experience in and reporting on the real estate industry and, additionally, has written dozens of courses on the topic. Carole lives in Kennesaw with her husband, Bryan, and four children. She believes wholeheartedly that your best investment is always your OWN education.