It is a short time to closing, and the buyers of your seller's home have sold their house.  They request of the seller to be able to move into the home they are purchasing just a little bit early so they will not have to rent or move their belongings twice.  They are great people, a nice young family with two young children.  The seller has already vacated his home.  What could it hurt?  Everything has gone smoothly, and anyone would be a real (estate) meanie not to help them out.  Never forget the old adage, "If something can go wrong, it will!" 

Recently a seller allowed his buyers to take early occupancy of the home he was selling.  During the time the buyers were residing in the home, heavy rains came.  They became aware of a leak in the roof, as well as some drainage issues, and decided they did not want to purchase the property. 

They had made a large earnest money deposit, and the contract stated that the buyers would not have the earnest money returned should they fail to close on the house.  The seller refused to return the large earnest money deposit to the buyers.

To make matters worse, during the time the buyers lived in the home, they had begun to make some renovations, and when they left it was discovered that several thousand dollars worth of repairs would now be required to be able to put the home back on the market!  It would take weeks to complete the needed repairs, and there would be a significant amount of time when the house would not be shown.  No written agreement had been made between the buyer and seller as to how such damages would be handled.  Is this a nightmare, or what!?

How do you counsel your clients regarding requests to take early occupancy?  What have been your experiences, good or bad, with early occupancy?  What are the requirements in any written early occupancy agreements you may use?