Cash purchase, seller want to stay back after closing

[Jason Phu]

Hi Everyone,

the seller is asking a quick closing on a cash purchase, and want to stay back after closing for another 30 days. As a buyer, what should I do to make sure everything is going right in this situation? I don't want to give all my money and can't get them out if they wouldn't leave afterward. Anyone encounter this situation before? should I move forward with this kind of transaction and does it sound alarming? 

[Bill B.]

Charge fair market rent for first 30 days, double that for 2nd & 3rd month. Even more for month 4-6. (They shouldn’t care since they won’t be there anyway. Right?). Keep at least all those rents added together plus another $20-$30k to cover unseen damage and damage that occurs during move out as well and any required cleaning. Make sure you have pictures and all agree on what pre-existing damage is acceptable. 

Explain to them you want to give them all their money back except that first month’s rent within 10 days of them moving out. But you’ve heard horror stories from your “friends” about sellers that never move out, were hiding damage, or damage the place during move out. 

As long as it’s all held in escrow there should be no risk to you or seller of theft. (Make sure escrow agrees to release monthly rent payments to you until sellers move out, rather than just hold all the money.)

I’ve had a good experience with this setup 3 out of 3 times. Twice they were out on time, once they paid double rent for 2 months. Good luck.