How do you negotiate a key release contingency in the contract?

2 Why is a key release contingency important?

A key release contingency is important because it gives you legal leverage and clarity as a buyer. Without it, you may face uncertainty and delays in moving into your new home, or worse, find yourself in a dispute with the seller over the occupancy. A key release contingency can help you avoid these problems by establishing clear expectations and consequences for both parties. It can also protect you from potential liability or damage to the property while the seller still occupies it.

3 How to negotiate a key release contingency?

The best way to negotiate a key release contingency is to communicate with the seller and your real estate agent before making an offer. Find out why the seller needs more time to move out and how long they expect to stay. Then, decide if you are willing to accommodate their request and under what terms. You may want to ask for a lower price, a rent payment, a security deposit, or a walk-through inspection before the key release. You should also consult with your lender and title company to make sure they approve of the arrangement. Once you agree on the details, make sure to include them in the written contract and have both parties sign it.

4 What to do if the seller breaches the key release contingency?

If the seller breaches the key release contingency, you have several options to enforce your rights as a buyer. The first step is to contact your real estate agent and your attorney and notify them of the situation. They can help you negotiate with the seller and try to resolve the issue amicably. If that fails, you can use the legal remedies specified in the contract, such as withholding funds, suing for damages, or filing an eviction notice. You can also contact the local authorities and report the seller for trespassing or unlawful detainer. However, you should avoid taking any self-help measures, such as changing the locks or cutting off the utilities, as they may backfire and expose you to liability.

5 How to prevent key release issues?

The best way to prevent key release issues is to plan ahead and avoid them in the first place. Ideally, you should aim to close on the same day that the seller vacates the property, or as close as possible. This way, you can minimize the risk of delays, disputes, or damage to the property. You should also inspect the property before closing and make sure it is in the same condition as when you made the offer. If you notice any problems, you can ask the seller to fix them or adjust the price accordingly. Finally, you should always read the contract carefully and understand your rights and obligations as a buyer.