[quote=The-Shoveler]I have also seen where the bank has cut a deal with the seller that they will be able to rent the place from the new owners,
The owners never saw the seller until the escrow inspection period was over, once the new owner have the first encounter (not going to say what transpired), but after that encounter, the buyers walked away from the deal and their deposit, making the agent very happy (the agent at that time this was the third deposit they got).[/quote]
Shoveler, a lender has no authority to do this. If the lender decides to approve a short sale where a provision in the contract was that the property be delivered vacant, then the lender agreed to that provision when they approved the offer.
They can’t rescind this part of the offer and agree to the price without countering the buyers (or having the “sellers” counter the buyers).
If this really happened, then the buyers didn’t ask for the property vacant (they had an incompetent agent).
If the lender countered the buyers (or the seller countered the buyers) with an occupancy provision for a period of weeks/months after COE (carryover occupancy or possession) and these buyers agreed and signed it without ever meeting the sellers, then they screwed themselves (again, with the help of an incompetent agent, IMO).
The Statute of Frauds in CA requires that all provisions of a RE contract (incl an offer to purchase or listing agreement) to be in writing.
