Home Buying in Petaluma>Question Details

Ken Shuman, Home Owner in San Francisco, CA

Rent back question...

Asked by Ken Shuman, San Francisco, CA Mon Sep 9, 2013

A good buddy of mine just bought a house and is renting it back to the owners for 30 days. The people they bought from are renting back the new home they just bought to its current owners. Do they need a separate agreement in place to make sure they can move in 30-days from now?

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Answers

7
Yes. Your friends agent should have recommended they have the sellers (now his tenants) complete a "residential lease after sale" form (AKA "rent back agreement") prior to the close of escrow to spell out the terms of the agreement to rent back.
1 vote Thank Flag Link Mon Sep 9, 2013
Your buddy needs to consult with an attorney who handles residential real estate matters regarding a potential lease.
1 vote Thank Flag Link Mon Sep 9, 2013
CA is an escrow state. An attorney is not required. CA Realtors can provide everything necessary to handle this scenario.
Flag Tue Sep 10, 2013
Sometimes it's possible to include the proper language in the original purchase agreement, though most brokers require their agents to use CAR Form RLAS - Residential Lease After Sale - as an addendum to the sales contract. It reads much like a lease, but is applicable more specifically to the situation you describe.
1 vote Thank Flag Link Mon Sep 9, 2013
Hey Ken,

Your buddy should only need the rental agreement on his new home he is renting back to the sellers as he is the landlord now, and the sellers are the tennants.

Hope that helps.
Steve
1 vote Thank Flag Link Mon Sep 9, 2013
Every thing in writing to protect all parties involved.
1 vote Thank Flag Link Mon Sep 9, 2013
Ken,

I think the answers below have already addressed the main question. I just wanted to add that most lenders will permit up to 60 days of rent back in a purchase situation. Trulia answers get found in searches all the time, so I just want this vital piece of info to be associated with this thread as well.

Best of luck,

Rob Spinosa
rspinosa@rpm-mtg.com
0 votes Thank Flag Link Tue Sep 10, 2013
Hi Ken,
Yes, there is a rent back after purchase agreement form available to your friends agent through CAR (CA Assoc. of Realtors). The form covers pretty much everything including when the sellers are to vacate the property, what amount they pay, how they are expected to keep up the property, etc... If there is anything unusual that is required, there is room to write it into the agreement on the form.

Having a clear understanding and a written agreement protects both sides and avoids awkward circumstances.
0 votes Thank Flag Link Tue Sep 10, 2013
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