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Permalink Reply by Valerie Crowell on December 11, 2011 at 6:38am

Of course we don't know what State this sale has occurred in, but in California we sell real property.  Personal property can become real property by method of attachment, whether or not it is immovable, and so on.  Some can be contained in the contract if specifically called out, such as a washer, dryer, spa, or a plasma affixed to a wall or in one case I know the dog was included in the transaction.  But furniture, that is things like a sofa, a table, chairs and the like are never included without being specifically called out or brought in with a Bill of Sale because it is chattel.  So I return to my original question, why is the furniture involved in this transaction at all?

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Permalink Reply by SSbuyer on December 11, 2011 at 6:43am

I'm surprised at all of the surprise about this. Particularly if this is a condo or townhouse located in a community where rentals of the units are common, aren't furnishings (including housewares) often included to offer a "turnkey" rental?

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Permalink Reply by Thom Colby CA Brkr 888-391-5245 on December 11, 2011 at 7:00am

The original post came from David in Gulf Shores Alabama.  I expect the subject property is probably a rental / investment property. 

On rental properties furniture is typically included on an Addendum / Detailed list when buyers are paying cash and usually separated from the Real Property purchase.  Two reasons; commissions not paid on furniture and property tax base.

 

The real conflict on this thread is why does the furniture need to be replaced?  If this is simply because the buyer wants it replaced with something newer, - on a short sale it should never have been agreed to by the buyer and seller.  It is doubtful ANY short sale lender would allow their loss to be increased by paying for furniture for a buyer ------ Ain't gonna happen.

 

 

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Permalink Reply by Kathleen Sheridan on December 11, 2011 at 8:35am

In my experience, furniture, whether sold or given by the seller to the buyer, is not part of the agreement of sale, even though we do include certain 'customary' items which in this location includes washer/dryer, refrigerator, and micorwave.

As for what BofA will approve, I just had a case where BofA would not let the seller pay the lienable Water and Sewer bills on the HUD. These charges are normally adjusted at time of settlement, and the title company won't settle if they are not paid. The title company prefers to have these charges on the HUD. The BofA Closing dept was adamant. We had to figure out a work around that would satisfy all parties.  

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Permalink Reply by John Treadwell on December 11, 2011 at 2:56pm

Seller can do whatever for the buyer after closing. but the furniture will never get approved by anyone in the short sale approval.    Buyer and seller can agree to whatever they want outside the sale.   everyone is right here if the Lender get the idea there is 4000.00 in the seller pocket they will want it.   

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Permalink Reply by Mike Rizzo on December 12, 2011 at 10:17am

I guess the simple question is replace the furniture with what?  Different furniture that the buyer has picked out?  How do you know if you are satisfying the buyer.  If the seller is in agreement to purchase new furniture for the buyer and knows where to get it, I'd work out some deal outside of escrow where the furniture is purchased and delivered upon closing of the transaction.  You should not include any mention of furniture in the contract.  The furniture deal is between the buyer and the seller and you know nothing.  You are selling real estate and if the buyer have some other agreement about non-real property, then that's between them.

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Permalink Reply by Tonia Vickery on December 12, 2011 at 11:24am

David, it is unfortunate that the seller is even in this position to start with. To go through all this work and stress on your part and the seller's only to have the ONE buyer out there who demands $4,000 in new furniture? Really? This is the best buyer for a short sale that you could get? Short sales are hard enough without the extra burden of such a ridiculous contingency that most experienced short sale agents would have definitely advised the seller against. I am sure B of A would definitely make an issue w/this as if they are approached with this situation as you have described, then why isn't the seller offering the lender the money to help pay down the deficiency balance? The banks think this way and I would be very careful about posing this to them as you may inadvertantly put your seller on the hook for a $4,000 cash contribution to the lender at closing....I mean since they have the money and are willing to pay it at closing in one form or another...the bank will feel entitled to this little nugget.

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