Realty Reality: When Sellers Leave a Mess

Written by Posted On Wednesday, 02 August 2006 17:00

What should be one of the happiest times for a homebuyer can leave a sour taste.

Escrow is closed, the seller has moved out, and the buyer is ready to move in, but when the buyer arrives he discovers that the seller has left behind a dumpster load of unwanted junk. Half-empty paint cans, gardening paraphernalia (including pesticides), broken picture frames, inoperative vacuum cleaners, assorted broken tools litter the garage or yard.

At this point, more than one buyer's real estate agent has rolled up his or her sleeves and participated in the junk removal effort. It is one of the less glamorous parts of the business.

Such behavior by a seller is not only monumentally inconsiderate; it also may be a breach of the sales agreement. In the standard residential purchase contract published by the California Association of Realtors® (CAR), section 7.A. provides, "… (ii) the Property, including pool, spa, landscaping and grounds, is to be maintained in substantially the same condition as on the date of Acceptance [of the contract]; and (iii) all debris and personal property not included in the sale shall be removed by Close of Escrow." [my emphasis]

That's what the contract says. What about enforcing it?

First of all, we note that one difficulty here is that the condition is usually not discovered until it is too late. The same purchase contract gives the buyer a right to have a "walk through" of the property five days (or some other specified number) prior to the close of escrow. The purpose of the walk through is to determine that the property has been maintained as required, and also to see that any agreed-upon repairs have been made. But, typically, this inspection is done a few days prior to closing. You wouldn't want it to be done right before closing, because it is wise to allow a few days leeway just in case some repairs had not been satisfactorily completed.

Thus, when the walk through is performed, the buyer doesn't see the property in the condition in which it will be left. Quite likely, the sellers will not even be fully packed by then.

Then, secondly, when the condition (debris left behind) is discovered, usually the seller will have the money in his pocket and, even if he can be found, will have little motivation to live up to his part of the bargain. We can pretty well count on the fact that his conscience won't move him, given that he left all the stuff in the first place.

What to do? Well, if this is an experience someone has already had, about the only avenue open is small claims court -- seeking the cost of the debris removal on the basis of the contract breach.

But, good luck, the seller may be across the continent by now. On the prevention side, it really isn't a bad idea to have a small amount -- maybe $500 -- held back in escrow, much like a rental security deposit. This makes sense anyway, in the typical scenario where the buyer might not receive actual possession of the property until two or three days after the closing. In that situation, the seller has now become a short-term renter (even if no daily fee is charged), and it's quite possibly he could inadvertently cause damage during the move-out process.

But, getting a "security deposit" from a seller is no easy negotiating task. Most sellers would take considerable offense at such a suggestion. Moreover, holding such money is nothing that an escrow company will relish either. They don't want to get involved in disputes over its disposition.

No one said this would be easy.

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Bob Hunt

Bob Hunt is a former director of the National Association of Realtors and is author of Ethics at Work and Real Estate the Ethical Way. A graduate of Princeton with a master's degree from UCLA in philosophy, Hunt has served as a U.S. Marine, Realtor association president in South Orange County, and director of the California Association of Realtors, and is an award-winning Realtor. Contact Bob at [email protected].

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