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Buying a Home – 10 Things to Know when Making an Offer #10 – Occupancy

By
Real Estate Broker/Owner with Home Point Real Estate DRE # 01492725

Buying a Home – 10 Things to Know when Making an Offer #10 – Occupancy

When preparing your home offer you need to define when (or if) you will occupy the home. Post 10 will explain occupancy issues.

Number 10 – Occupancy

If you are Buying a Home in California right on the contract you will have to state if you are buying as an owner occupant or not – generally a Real Estate Investment. Some Home Sellers care because they have limits on sales to non-owner occupants. However, the lenders will care and it may make a difference on loan qualification.

You also need to define when you will get occupancy to the home. The Home Seller may rent back while they prepare a move. As a Home Buyer the seller may let you move in before closing and this should be defined in the contract.

If the property is tenant occupied the contract should clarify when the tenant will be out. Who is responsible to see that he is out. Or under the conditions the tenancy will continue after the Home Sale.

The standard contract is owner occupied and occupancy rights change with the recording of the Title. But beware it is not always so and other arrangements can be made.

For Real Estate Service and Real Estate Investments in the East Contra Costa County Communities of Brentwood, Antioch, Oakley, Pittsburg, Discovery Bay and beyond Call Home Point Real Estate at 925-260-4321.

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Comments (1)

Eric Peltier
Eric Peltier - Premier Mortgage Group - Boulder Colorado - Boulder, CO
Mortgage Lender in Boulder CO

A quick note - Fannie/Freddie regulation is that a Buyer, who is buying as a Primary Residence, Occupies the property within 60 days of purchase date.

In reality, if the contract states a rent-back to the Seller for any more than 30 days, an Underwriter may  get  pretty nervous and require a letter from the Seller stating that they intend on departing before the 60 limit.

May 31, 2012 08:09 AM