Rental Property Investor · La Puente, CA · Member since 2015 · 87 posts · 20 votes
Hello everyone,
I'm negotiating a sale contract with seller, they asked to deliver keys 3 days after closing, all items will be removed by then. Is there any risk to me if I agree? Appreciate your input very much!
Your contract should state that the property is to be delivered vacant and broom-clean. Keys, alarm codes etc should be tendered at closing.
If the sellers intend to have access to the property after closing, you need to execute a "use & occupancy" agreement. And you need to be prepared to evict them if they stay 10 seconds longer than agreed to. They should be paying a per diem, including your costs for 3 days of taxes, insurance and utilities. The per diem should skyrocket on day 4 and beyond - like by a factor of 5 or more. You want to make it very painful for them to stay beyond day 3.
There's the issue of damage to the property - banging into walls while moving out. Breaking a railing while passing a sofa over it. Intentional damage by the sellers or even a vandal in the mean time.
If you allow them to stay beyond closing, you need to hold back funds at closing, sufficient to cover eviction, cleaning and for any damage that might happen - and you need to do a walk-through with a video within a few hours of closing to document the condition.
Again, this is a very bad idea. I hope you're represented by an agent or attorney.