let seller stay in buyer's property

**RE101** · 04-18-2010, 01:47 PM

would it say it's a wise decision to close escrow before the seller moves out? basically because u dont want to lose out on the low interest rate so u rather close the escrow and get the good deal before the seller moves out of your property?

**Chrisopher Moltisanti** · 04-18-2010, 01:52 PM

Yeah, especially if the buyer's got a place to stay while the seller gets their affairs in order.

**RE101** · 04-18-2010, 01:58 PM

is there any risks to let the seller continue living in the property after the buyer purchased it?

**maui** · 04-18-2010, 05:45 PM

In my experience, it's something that would need to be stated in the purchase contract, spelling out the terms of the seller's stay (for how long, at what rate, etc) but I have also seen agents draw up a separate lease agreement. The risks to the the buyer would be those of a landlord (eviction, non-payment), so it's all fairly standard and not uncommon. Best of luck.

**Hollywood Landlord** · 04-23-2011, 09:46 PM

Originally Posted by maui

In my experience, it's something that would need to be stated in the purchase contract, spelling out the terms of the seller's stay (for how long, at what rate, etc) but I have also seen agents draw up a separate lease agreement. The risks to the the buyer would be those of a landlord (eviction, non-payment), so it's all fairly standard and not uncommon. Best of luck.

There are a number of options regarding a lease and escrow.

**MikeAustin** · 04-26-2011, 06:26 PM

Originally Posted by maui

In my experience, it's something that would need to be stated in the purchase contract, spelling out the terms of the seller's stay (for how long, at what rate, etc) but I have also seen agents draw up a separate lease agreement. The risks to the the buyer would be those of a landlord (eviction, non-payment), so it's all fairly standard and not uncommon. Best of luck.

Yes, this is what usually happens to ensure protection.

**EugeneRealEstate** · 05-09-2011, 11:17 PM

It might. If the seller is going to stay in the house then you rent back the home to cover your loan payments. But only do a month to month not a lease that way if you have to you can get them out of the house quicker than on a lease.

**realestategirl** · 05-13-2011, 03:37 PM

If you do decide to let the seller stay in the house specify how long they will be there in writting. Tell them to not to overextend their stay as you will be needing the house in that specific time.

**Greg** · 05-14-2011, 06:42 AM

Just make sure the buyer understands that if the seller's position changes so does everything else. Once these people stay in the house for one night they become tenants and the new owner becomes the landlord subject to all the same laws binding landlords.

If they are buying a house and that deal falls through then your sellers will have no where to go and you might have to evict them using the same drawn out process all tenants are provided by law.

You might want to escrow money to cover any fixtures that might disappear when they leave and/or damages from moving.

The new owner has to be flexible with their moving options just in case they can not move into their new house because of the new tenants not moving out.

It is never a good idea to leave the sellers in the house after closing.

**Joe Williams** · 05-15-2011, 01:28 PM

I try to negotiate a brief layover for my sellers. I do recommend an escrow holdback and fees for the layover.

However I never advise my sellers allowing buyers early possession.