The Seller Hasn't Moved Out at the Final Walkthrough. What Can a Buyer Do?
You arrive for the final walkthrough and the house is still full, or the seller is still living there. Your options as a Massachusetts buyer, from delaying the closing to an escrow holdback, and why you shouldn't sign until it's resolved.
If the seller hasn't moved out by the final walkthrough, don't close until it's resolved. Once you sign and the deed is recorded, the house is yours, and so is the problem: you'd be paying the mortgage on a home someone else is still living in or filled with their things. Call your attorney and your agent immediately. The usual fixes are a short delay of the closing, or a written agreement with money held back from the seller's proceeds until the home is delivered as promised.
What is the seller supposed to deliver?
Read your Purchase and Sale Agreement. Massachusetts agreements typically require the seller to deliver the home free of all tenants and occupants and in broom-clean condition, with the seller's personal property removed, except anything the contract says stays. That language is what gives you leverage. Your attorney can confirm exactly what yours says.
What are a buyer's options?
- Delay the closing. The simplest protection. Reschedule for when the home is actually empty, with a new walkthrough first. Your lender and attorney will need to coordinate the rate lock and closing date.
- An escrow holdback. Part of the seller's proceeds is held, usually by the closing attorney, until the seller finishes moving out or cleaning, then released. The amount should be large enough that the seller wants it back, and the terms (deadline, what happens if it's missed) should be in writing.
- A credit or cash payment. If the problem is leftover belongings or trash, a negotiated amount to cover haulers and cleaners can settle it at closing.
- Walk away. Rarely the right move, and only with your attorney's advice, but the contract may give you that right if the seller can't deliver.
A story from a conversation this fall
A homeowner told me about their own purchase a few years ago. At the walkthrough, the seller, in the middle of a hard personal situation, hadn't moved anything out and said they weren't going to. The seller's side proposed a holdback. The buyer refused to sign anything until the home was empty, called their lender and attorney, and the closing moved about two weeks. When the seller finally left, they left a lot of trash behind, and the buyer negotiated money at closing to pay for removal and cleaning.
It was stressful, and the buyer felt pressured by people who were supposed to be on their side. But they were right to protect themselves. A holdback can be a reasonable tool. It is not a reason to close on a house that isn't delivered.
How do you prevent this?
- Schedule the walkthrough close to closing, ideally the day of or the day before.
- Ask your agent to check in with the listing agent about moving plans a week ahead.
- Know your contract. Make sure "broom clean" and "free of occupants" are in it.
- Keep your agent and attorney in the loop the moment something looks off.
Questions people actually ask.
Can I refuse to close if the seller's things are still in the house?
Talk to your attorney first, but generally, if the contract requires the home to be delivered empty and broom-clean, you don't have to accept less. Most buyers delay or negotiate rather than walk away.
How much should a holdback be?
Enough to cover the real cost of the problem plus a cushion that motivates the seller to finish, with a firm deadline. Your attorney will set the terms.
What if the seller is a tenant's landlord and the tenant won't leave?
That's a much bigger problem. Do not close on a home you expected to be vacant if someone is still living there. Talk to your attorney before doing anything else.
This article is general information about Massachusetts real estate, not legal, tax, or financial advice. Every property and transaction is different. For advice on your situation, talk with me and, where appropriate, an attorney, lender, or tax professional.