Most home sales go smoothly enough. Some do not. What if the seller refuses to move out? A new law protects buyers of residential properties when a seller refuses to move out after closing.
Previously the buyer would have to go through a slower process called an ejectment action. Now the buyer can get the seller out through the expedited unlawful detainer process, which is what most people mean when they think of an eviction case. Certain conditions must be met before the buyer may bring the unlawful detainer action, rather than the slower ejectment process.
The conditions are: 1) The rent-back agreement only permits the seller to remain for no more than three months after closing; 2) the property was not a distressed home (was not in threat of foreclosure); 3) the seller was represented by an attorney or real estate broker.
The new law does not apply if the transaction fails to close. If the transaction fails to close and the parties are blaming one another the only recourse is a quiet title and ejectment action.
The new law only applies to sellers in possession after closing. A seller who allows a buyer early possession would have to bring an ejectment action if the sale does not close and the buyer refuses to move out.
If you have a failed real estate transaction, seek a consultation with an attorney to learn more about your rights.
