Pre-closing occupancy can be an issue if the property does not close or even if it does. If it does not close the seller may have to evict the buyers from the property as the buyer had personal property in the home ( any location, even the garage). If it does close, and you represent the sellers, you have put them in a potential bad position due to the fact that the buyers have had access to the property and will most likely come up with more issues that need resolution prior to close.
All the best,
1. Solid agreement is mandatory
2. Occupant to be held liable for any damage.
3. In the unforeseen event that closing does not happen- seller to be compensated.
WATERWAY REALTY, REALTORS
Also, when a person lives in a property- they find things that they did not notice before... A SOLID pre-closing occupancy agreement is mandatory.
If the deal falls through, you could also have a nightmare on your hands if the buyers won't move out or have caused to the property. Personally, I have never negotiated a pre-closing occupancy. I have negotiated a rent back and ended up helping the sellers move out to make sure that they'd get out in a timely fashion. I know the buyer's agent was nervous about the whole situation and was certainly relieved when I informed him of the moving date. Anyway, if you represent the seller and can't avoid a pre-closing occupancy, make sure you include the necessary safeguards for your clients and I would recommend your clients have the terms reviewed by an attorney.