This should have been handled by your agent in writing. Don't make any verbal agreements.
I am with you that I like the funds collected from the sellers proceeds at closing/funding and on the HUD.
This includes both deposit and rent.
Some title companies will do this, some wont.
My guess is they don't like to do it, but I insist, and normally it is not an issue.
Some sellers also like to try to cut separate checks. Personally I don't want to deal with anyone's checks.
If they're going to cut a check, then there shouldn't be any problem putting it on the HUD and collecting at closing.
Some seller's think you shouldn't cash their deposit check and just keep it on file and tear it up if they move out on time and leave everything in good condition. Again.....I never want to see this and want it deducted on the HUD. People get funny about these things and I've seen checks get voided before. It's just not worth going to court over $500 or whatever the deposit is to me.
I just had an agent tell me she's never done a leaseback with a deposit.
My answer is I've never done one without.
People get busy when theyre moving....they forget to clean up, they get the power turned off early and can't clean up, they forget to mow the yard, they forget to take out the trash, they forget to leave remotes, they forget to leave keys...and on and on and on.
Lesson learned....get a deposit that makes sense...and get it at closing on the HUD.
The only exception to this might be if your lender doesn't like it. Typically this leaseback cannot be part of your downpayment. If you need 20% down for your loan...then you need to put down 20%, not including the lease....perhaps you can take that off closing costs. I'm guessing $145/day for 70 days, none of this will be an issue for you, but you can always check with your loan officer to make sure.
Real Estate Pro
PJ, regarding your 2nd question in the conversation stream, It is possible to draw up an(other) amendment to the lease addenda on your leaseback agreement stating the terms, at this stage into the transaction. In this amendment, it could include when/how the lease will be paid and have it signed off by you and the seller leasing back the property for the 70 day time period. Are you taking advantage of a Realtor to represent you on the buy side? Some people even get a deposit refundable upon a clean move out and some even state that the carpet and house will be left in same condition as is in the walk through. If your not using a real estate expert, your title company could likely help, just as you said he offered to do for you. I doubt the seller's leasing from you will baulk at it. Details are vague because this is typically something addressed before final execution of the documents. Hope this helps?! Click on my name to see my contact info if you want help here on out.
That addendum has fields that highlight how and when you will be getting paid. The funding would not happen until the title company has good funds from the seller to give to you.
If you don't have a realtor, contact one of these people.
Maybe the TREC can be amended.
I don't believe that the TREC cancels your other contract unless it specifically addresses that lease agreement..... So you should be safe.
I just wish it specifically said that on the TREC form.
As Tom said below, all transactions must be disclosed to the lender. You will have to sign a document at closing stating that there are no undisclosed agreements between you and the seller.
As long as you haven't closed yet, I strongly urge you to get your ducks in a row and get your Realtor to draft a temporary lease. It is a form promulgated by TREC (Texas Real Estate Commission) for this exact purpose.
Nicole Arenas, Realtor
our agent said most sellers just pay by check - kind of vague. i guess i should have insisted on stronger language in the TREC form.
If you are purchasing a $150K home, I would suspect the underwriter to call it fraud(getting around loan guidelines). As it would be well above normal rent. If the rent is a little more in line with the purchase price, then you will get less resistance.
Also, you will need to prove that you had the money to pay that $145 per day.