Rent back to seller, should I?

Question

Im I. A probate situation and the closing has extended 2 times already.  We are looking to close on the 27th of this month but the seller needs more time to vacate.  I'm considering a rent back. What should I charge for rent?  Market rents plus a %premium?  Or should I not even consider a rent back as a newbie?

It's an all cash deal with a wholesaler.  I'm afraid they will abandon me and run at closing (of course they would) and leave me with a mess.

Should I encourage postponing closing again?  I'm not heartbroken if she backs out.

Milton Rivera · Answer

@Ayne Cardona

The rent back sounds like a reasonable solution.  You do have to consider the length of the delay, if each delay has been about a month or two then, express the fact these delays are costing you time and money.  Being that this is a wholesale deal, we don't know how well the wholesaler managed the seller's the expectations and perhaps they were not as ready to move. If the delays are only a week here and a week there, then I would just work with them.

The issue with a rent back is that you have to draft and put a lease in place.  This includes documenting the existing conditions to ensure they don't damage the property when they move and deposits.   It is not a quick fix but if the seller really needs more time, then perhaps you can agree to a three (3) month lease.