An offer comes in and it calls for possession at close. Your seller currently occupies the property. What are your options, what are the flaws that can occur?
Risk of giving possession of the property at close, many factors to consider.
- Seller loads up a moving truck, has the utilities turned off and the home does not close on time, or just does not close.
- Closing of the seller's next home may delay and they are left homeless.
Risk to the buyer if the seller remains in the property after close and leases back for a short period of time.
- Seller does damages property in the move.
- Buyer does not have the opportunity to see the home vacant and do a proper acceptance of property walk though.
- Property is left dirty with debris.
- Seller delays or does not move out when is to vacate and give possession.
Risk to the seller if they lease back the property after close.
- In Texas the seller is still responsible for repairs until they turn over possession.
- Can be accused of damage to the property that was created by the buyer when he moved.
- If have security deposit, getting the funds back.
Some safety nets that can be put in place is to have a walk through before and after the seller leaves the home with a property condition check off. Have a security deposit from the seller if they lease back. Communicate some concerns and have an upfront agreement on how things are to be handled.
Even the most smooth transactions can develop problems which can detract from the good experience. Explaining all the risks and letting the informed parties make a business decision on how they negotiate and accept the question of possession of the property.
When posed the question ... what do you recommend by the seller what would you say?