Here’s why I don’t care for the new post-closing addendum in our market.

We have a new form from our Toledo Board of Realtors, and I don’t like it. Why don’t I like the new post-closing addendum? Let’s take a closer look at it.

First of all, what is it? This document is a new three-page form approved by the Toledo Board of Realtors and Toledo Bar Association Standard Addendum. It’s being used more often by agents when sellers are staying in the house after the closing.

Now, letting the seller stay in their old home for 30 or so days after closing may be weird in other markets, but it’s normal here. It frightens some buyers because they just put a bunch of money down. However, we have a long tradition in Northwest Ohio of post-closing occupancy agreed to with nothing more than a handshake. 

What is this document supposed to do? Essentially, this document is designed to formalize the post-occupancy agreement that was previously agreed upon with just a handshake.

So why don’t I like this document? The reality is that it’s hard to replace trust with a piece of paper. In fact, I believe it’s impossible. For example, this addendum says that even though the buyer is not a landlord, they’re going to want a lease. In short, it attempts to replace the post-closing handshake and trust that used to happen at the title company.

“Even if the seller breaks the document, you still need to take them to court.”

Here’s my opinion: If you’re a buyer and you need this piece of paper because you don’t trust the seller, don’t buy the house. If you expect this post-closing addendum to make dishonorable sellers behave because there’s three pieces of paper, it can’t do that. The reality is that even if your seller breaks the agreement, you’re going to have to take them to court to enforce it. It will be a huge legal headache in the best case scenario. That’s why I recommend you don’t rely on this document to replace trust. 

The real estate market is constantly changing. Some of the things we do today were impossible 20 or 30 years ago. We’re always trying to adapt to get you the best deal possible. If you need help buying or selling, give us a call or shoot us an email. We are always willing to help.