If at all possible avoid it. Nothing good ever comes. After being in the house for 2 days they notice they don't like the way the sun comes in the back window. No longer want the property. But since they have nowhere to go you're going to have to evict them. Well if you can with Covid going on......
The only way I do it is with a considerable amount down (Over $10,000 to cover the risk). They pay rent per day (always enough to cover the costs of the mortgage etc). And they sign off on final inspection prior to moving a sock into the house.
Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
6y
@Rey Gonzalez, oh man, do I HATE temporary occupancy before closing! You want to see additional negotiations at a closing table, just let the buyer occupy the house for a few days or a week or two, and any nail hole will come up at the end.
If at all possible avoid it. Nothing good ever comes. After being in the house for 2 days they notice they don't like the way the sun comes in the back window. No longer want the property. But since they have nowhere to go you're going to have to evict them. Well if you can with Covid going on......
The only way I do it is with a considerable amount down (Over $10,000 to cover the risk). They pay rent per day (always enough to cover the costs of the mortgage etc). And they sign off on final inspection prior to moving a sock into the house.
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
6y
Make sure you write a lease (even if MTM) at market rate that is voidable upon sale fail.
Would-be buyer agrees to vacate within 48 hours of written notice of sale fail. E/M becomes non-refundable and released barring seller default upon sale fail.
Have had one and that's how we did it. They did close, so don't know if that'd be sufficient.
May want to call an atty instead of listening to a broker :)