Home Buying in 90034>Question Details

Firsttime, Home Buyer in Los Angeles, CA

Seller wants to do a leaseback for a couple of weeks. Is it safe? Anything I should look out for?

Asked by Firsttime, Los Angeles, CA Mon Feb 20, 2012

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Absolutely! Just make sure that all terms are in writing or complete an actual lease agreement form and have all parties sign with all terms included (i.e. rent amount; day to vacate; language to cover for any damage to the property etc.) Sometimes this does occur when the escrow doesn't close on the specific date that it was to close pursuant to the purchase contract.
1 vote Thank Flag Link Wed Mar 28, 2012
Relatively a very safe situation:
You know who they are, you have a track record.
If you do not need to be in the house, at that time
You can do a nice thing for them.

Good luck and may God bless
1 vote Thank Flag Link Tue Feb 21, 2012
Firsttime,

A lease-back is a formal lease. All documents should be signed,dated by both parties and submitted to escrow. Sellers per diem lease amount is the buyer's total housing expenses (PITI). Include in lease-back seller still responsible for utilities, gardening and etc until end of lease. Best to close escrow and allow seller to lease-back. This give sellers the time they need to relocate.

Best of Luck
Gail Mercedes Cole
EXP Realty
310.853.9933
0 votes Thank Flag Link Mon Jun 24, 2013
Hello Firsttime,

Allowing a lease back for a couple of weeks is safe. Just make sure you have a clear lease agreement with the seller, who will become your tenant.

Often times sellers just need a little more time to relocate, and a lease back is a great option.

Best of luck to you, and Congrats on the pourchase of your new home!

Kawain Payne, Realtor
714-293-11-510
0 votes Thank Flag Link Sat Feb 25, 2012
Dear First time,

Who better to lease back then the owners who have so much invested in the property? I doubt you will have any issues with them. This is a common practice for owners who sell, but need to remain in the property after escrow closes.
0 votes Thank Flag Link Wed Feb 22, 2012
A lease back for less than 1 month is not uncommon and perfectly acceptable. Discuss with your Realtor what terms you are willing to accept for rent and security deposit. Both parties must sign an agreement, commonly on a PAA (Purchase Agreement Addendum). A walk through the property prior to the close of escrow should be followed up by a walk through prior to taking possession of the property to confirm the condition of the property. And take photos! I agree it depends on the circumstances of the particular sale. If you feel uncomfortable about it, don't feel like you have to. But also remember you can request a security deposit amount that could allay some of your concerns.
0 votes Thank Flag Link Tue Feb 21, 2012
You have to be careful about what happens if that seller stops paying you or doesn't move out. You would have to evict them which is very expensive and takes a long time in California.
0 votes Thank Flag Link Tue Feb 21, 2012
What directives has your agent given you? I agree with Annette; however, it depends upon the situation. And, the reason. Are they delayed in closing on their new home? Is this a short sale and they are just having trouble adjusting? For sure have everything in writing.
0 votes Thank Flag Link Tue Feb 21, 2012
Not an uncommon situation. However, make sure all parties put it in writing usually by way of a PAA (your agent know this form) which will provide for the rental amount, time period, payment of utilities, security deposit and rental for any further holdover.

Best of luck in your new home!
0 votes Thank Flag Link Tue Feb 21, 2012
You should ask for a deposit to protect against damage to the property. You also should ask for rent. After all you are paying a mortgage.
0 votes Thank Flag Link Tue Feb 21, 2012
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