Q & A - The Sellers are requesting to stay in the home after Closing
Post sale occupancy happens more often when inventory is tight and sellers have not found a new home. Though it can get tricky and my recommendation is to avoid it. If it can't be avoided, have a good real estate attorney write up an agreement to cover all contingencies:
Buyer - We love this home, and can see ourselves living in this home. In the MLS it states the Sellers would like a 30 day rent-back, can they do this? How does this work?
So happy you love this home, and first I will contact the listing agent and see if they HAVE to have these 30 days, or if you could have possession at closing. If it says they would "like" to have a rent-back, doesn't necessarily mean they have to stay for 30 days.
If you do agree to this rent-back, there will be a post occupancy agreement prepared addressing who pays the electric/gas and water, that the Sellers will have renter's insurance to cover their personal possessions, and there should be a deposit collected for any damage done after closing. Usually the Sellers pay a rent equal to the Buyer's mortgage payment. (if the mortgage will be $2,000/month then the rent for a 30-day month would be $66.67 per day) The water is usually transferred by the title company day of closing, so this amount should be added to the daily rent payment. The electricity will remain in the Seller's name until you take possession.
The rent check is paid to the Buyers at closing and the buyers get one key to the home, and the other keys and garage door openers are left in the home day of possession.
A couple of extra thoughts on the post-closing occupancy - be sure to address Sellers will continue to maintain the yard and home in the same condition as it was when the contract was executed and all personal items and debris will be removed, including pet debris in the yard. I can think of a time when I had very lenient Buyers approve this agreement, and get burned when they finally took possession!
In a very strong Seller's market, the Sellers may agree to list their home, but need extra time to locate a replacement home. Rather than a post closing agreement, another option would be to allow the Sellers two weeks to locate the replacement home (viewed as a contingency) and once they remove this contingency, Buyers will begin the contingencies, such as doing their inspections.
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Metro Brokers - House to Home, Inc.
GRI, CRS, CNE, e-Pro
Broker/Owner
Joan@JoanCox.com
720-231-6373
A Denver Metropolitan Realtor
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