The deal looks almost fool proof and you’re waiting to close. The buyers either need to move in right away or they just want to. Of course, moving out of a home and into the next can seem almost impossible to organize, and letting someone in just a “little” early seems like the nice thing to do. But wait.
A deal isn’t done until the signatures are dry.
If there’s one horror story, there are hundreds of stories where a buyer has been allowed to move before the closing.
- Buyers move in and start renovating – their financing does fall through and the sellers get the house back without all the work done.
- Buyers move in and nit-pick the house apart demanding things done before closing.
- Utilities aren’t transferred over properly and the sellers are responsible for high utility bills.
- The deal just doesn’t close and the buyers refuse to move out.
- The buyers move in and damage the house – or burn it down.
The list goes on.
However, there are times that early occupancy is absolutely needed. A very tight agreement is needed and should be reviewed by a real estate attorney to make sure your interests are protected.
Make sure the agreement is not a conventional lease agreement. It’s best to give the buyers incentive to close fast by making their per diem high enough so it’s actually cheaper to close quickly.
The utilities need to be switched over and their insurance needs to cover their property – even if they need to purchase “renters” insurance. It is also a good idea to spell out what would happen to the deal before a disaster strikes. What happens if there is a fire?
It absolutely needs to be written that there is to be NO alterations done to the house during pre-occupancy which would include NO nail holes, painting or changing things around.
Additionally, there needs to be a final walkthrough before the buyers start occupying and final signoff on the condition of the property.
This is only another reason why you have a professional represent you. We have the resources and experience to make sure you and your interests are protected.