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Jane, Home Buyer in Los Angeles, CA

The escrow is scheduled to close in another 45 days but the sellers would like to close earlier so that they

Asked by Jane, Los Angeles, CA Wed Feb 20, 2008

can purchase a bank owned property. At the same time, they are asking for a 45-day leaseback so that they have time to move into their new house. Should I agree to that? My biggest concern is liability. Even if a lease agreement is signed, how much is that going to protect me? I am not really benefiting from it in any way, just being nice to the sellers. On the other hand, I am still waiting for the sellers to accept my repair list.

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6
Rebecca,

You are definitely asking yourself the right questions. Have you talked to your agent about your thoughts? If not, you should.

Since you have a repair request still outstanding, assuming that you have a contingency, you may use this as leverage. Get your repairs and be a little flexible. You can also negotiate rent back during the time they occupy the property. This should be at least the amount that you will have to pay in mortgage, property taxes, insurance, etc. during the rental period. You may also want to consider a security deposit to be sure that they maintain the property in the condition that you currently see it.

These are all things that your agent can help you with. Just remember that everything is a negotiation and that there is a little give and a little take.

Please feel free to contact me if you have any other questions, but again you should make sure that your agent is aware of your concerns.

Good Luck and congrats on your future home.
3 votes Thank Flag Link Wed Feb 20, 2008
You have gotten some excellent answers here. Have the money held out of escrow from the sellers proceeds and held in escrow until you need to pay your payment. You can definitely charge them more per day than your payment is.


Everyone is working toward the same goal - a successful close. A little give and take on both parts would make this a smooth transaction. Have your agent come up with some scenarios that would work for both parties and have him/her get in there and go to bat for you!

There should definitely be something in this for you and a stipulation should be made in the agreement of the exact date they will be completely out - leaving the house clean and in as good or better shape as the day you close the deal! Definitely charge them a deposit if that gives you more of a comfort level.
Wishing you the best!
Web Reference: http://www.DotChance.com
1 vote Thank Flag Link Wed Feb 20, 2008
Rebecca,

I have to say that I don't agree with Ally. Yes, it is a buyer's market so you're probobly getting a very good price for your home.

Bridge loans are very tough to get right now.

There is no harm in "being nice". Traditionally you get paid a nice per diem for every day the seller's stay in the house after close of escrow.

I agree with Ray that you should get a security deposit.

Good luck,

Karen Miller
1 vote Thank Flag Link Wed Feb 20, 2008
Hi Rebecca,

You pose an interesting question about liability in a lease-back. I look forward to hearing what the other agents have to say because I don't know the answer.

You are in a good position to have your repair list accepted. I must caution, however, that repair requests should be for safety issues & code issues, not matters of taste. If your repair request is reasonable, you should have your realtor contact the listing realtor to explain that you will answer the lease-back request only after your repair request has been resolved to your satisfaction.

Best of luck,

Karen Miller
562-756-4144
1 vote Thank Flag Link Wed Feb 20, 2008
When it comes to real estate deals that are already in escrow, both parties are bound to complete the deal unless the lender refuses to fund or a contingency is unsatisfied. Remember that you are not obligated to "go out of your way" to accommodate the seller - just live up to your side of the contract and let the seller deal with his needs; it won't "ruin" the deal, unless the seller wants an ugly lawsuit on his hands. Yes, I play hardball, because I believe it's completely ridiculous to ask for such excessive concessions at this late a date. These requests should have been in the offer/counter-offer stage, NOT during escrow. I aggressively protect my client's right to be free of unnecessary contingencies and will not tolerate parties who seek to take advantage of their position simply because "they asked." Again, if you want to be nice, more power to you, but if you want to avoid any possibility of a problem, do NOT accommodate these sellers. I can see more things going wrong than going right if you acquiesce to their requests.

On the other hand, if you do accommodate and something "goes wrong", call me. My specialty is unwinding real estate complications and resolving contract disputes.

Quinn Kiet
The L.A. Condo Store
Downtown Sales Specialists
http://www.condostorela.com
Web Reference: http://www.condostorela.com
0 votes Thank Flag Link Tue Feb 26, 2008
Its a buyer's market. The sellers are lucky that you want to buy their home. There is something called Public Storage that the current owners can move their belongings into until they can move into their new house. If they don't have time to pack, many moving companies can pack a 4-BR house in 1 day and pick up the next day. They can get a bridging loan to buy their bank owned property. Why must you be rushed and put into inconvenience and take on additional risk? You don't have to. Also, them paying for repairs doesn't obligate you to lease back to them.
0 votes Thank Flag Link Wed Feb 20, 2008
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