Use and Occupancy - Risks for a Buyer in New Jersey

[Andy S.]

Hello All,

I am a buyer of a property in NJ for which closing is planned soon. The seller is requesting use and occupancy for few days post closing (ie post closing seller wishes to stay in the property for some days untill they move to their next residence for which their closing is also planned). In such a case is there any risk to me as a buyer in NJ? Would this become an eviction issue? 

Any of you experienced any adverse issues in such a scenario? Any caveats I must look for? Red flags?

Thanks in advance

[Earl White]

This happens all the time - considerations are:

(1) Size of their per diem fee for their standard stay;

(2) Size of their per diem fee for holding over;

(3) Insisting they maintain their regulation insurance and obtain renter's insurance;

(4) Making sure agreement classifies them as licensees not tenants;

(5) Making sure to have an agreement they will cover your legal fees if you have to bring litigation to remove them;

(6) Size of their security deposit;

(7) Extent of their responsibility for damages during their use and occupancy.

Obviously, proceed with caution if the seller is sketchy just like you would with any other individual.