Investor · Los Angeles, CA · Member since 2020 · 7 posts · 5 votes
Hey again BP!
I'm currently in escrow on a property with all contingencies removed. My wife and I will be using it as our primary residence and we are stoked to move in and make it our own.
My lender just contacted me and said we will be able to move up our closing date by about a week. Seems like a great idea on our end, since it'll save us money on our prepays.
Here's the tricky bit: our new closing date would be 5/27, but, based on our contract, the sellers will remain in the property until 6/6. We haven't technically called this period a leaseback or anything official like that. I'm wondering if I need to have my agent draw up a purchase addendum saying that this is a leaseback period and seller will pay for utilities, keep the property insured, not trash it, etc. for our own protection. It just seems like I should take some sort of precaution if people are going to live in the property for a week and a half after we technically own it.
Perhaps I'm overcomplicating things? Let me know! Thanks,
This shouldn't be too tricky. Escrow terms do change often. Checking with your agent/broker is the first step, but I'd simply just send over the "seller in possession) "SIP" form that both you and the seller sign stating the terms. It's just over a week, so if you want to close early, and the seller is onboard, perhaps you make it easy and cover the expenses? There may be an addendum needed as well, but it's pretty straight forward.
Congrats on your upcoming close of escrow and purchase of your first home. Yes, Charles is absolutely correct, and have your agent complete the Seller in Possession form. My worry would be that if the tenants are actually moving, because you wouldn't want to have to evict them. I might recommend waiting to close escrow until the tenants move out if you think that may be an issue. Please let me know how it goes, and I wish you the best on this first home purchase.
The David Greene team is having a Short-Term Rental event on June 26th, in Long Beach, hope to see you there and we can discuss buying your second property!