I recently got my latest fix-and-flip property under contract (yay!). We're scheduled to close on or before June 30th. This morning I received this request from the buyer's agent:
"The Buyers are asking me for some help so they don't need to move twice.
The Buyers for your Condo need to vacate their home on Ford Lane Vermilion before July 1st.
"We would like to see if the Seller of your Condo... since we gave him a very good offer... would allow....... if we get mortgage approval for this loan and we put the utilities into the new Buyers name....... if we could start moving into Grand Harbour the last 15 days of June so we could be out of our house by July 1st and don't have to move belongings twice.
"Perhaps we could put down some extra monies with the Title Company to show your Seller in good faith that the loan will be going thru. Out goal now is to try and close out your Condo transaction on or before the 30th of June. But.....it depends how fast the Condo Management gets the paper work back to Newman Title. That will be the key to transferring this property earlier.
"Any thoughts on how you can help us?????"
I'd like to help any way I can, but I also don't want to get burned or blindsided. This is the first time I've had this kind of request and would much appreciate any thoughts that the experience BP members might have.
as new home builder we get this all the time.... this is not anything you want to do
1. down side is they don't close and your stuck with a tenant
2. you want them totally motivated to get it closed and the loan etc.. having to live in a hotel or motel during transition gives buyers huge motivation to get their deal closed.
Not worth the hassle or the potential liability to have someone in the property while it's still in your name. If you ask your insurer, I'm sure you will get the same response.
Those portable storage containers sound like a good option for your buyer! Let someone else handle their belongings until they legally own it.
Do not do it. It is not unusual for a closing to be delayed or a loan approval to be rescinded. You may then have to evict people who have possession of your property but do not even have a lease. There is nothing but additional risk for you if you accede to this request. Perhaps, your refusal will motivate the buyer to do everything they can to schedule an earlier closing.
The buyers are not in that difficult of a position. They will be getting possession of your property at least a day before they have to move. They can negotiate to delay the moving date from their current residence if they would like or, failing a negotiation, simply stay over a day or two if they must. That may be a bit uncomfortable for them but you should not make that your problem.
How do you handle it? Easy...politely decline.
Thank you for the replies. I will likely tell them no, the reason being insurance, if nothing else.
The unit is a condo and includes a one-car garage. What if I offered to lease them the garage space to start storing their stuff, as long as they provided proof of some sort of insurance?
NO is the only answer........ if your buyers really thought about it they would agree to. No upside only downside
Thanks, all. I have told them no.
I researched just leasing the garage space to them for two weeks with proof of insurance and a binding end-date, but the cost of paying my attorney to just draft it up wouldn't be worth it.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing