Buyer in Palo Alto. Which form or contract should be used if I allow the seller to stay 1mth for free?

Asked by Buyer, Palo Alto, CA Fri Jun 8, 2012

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10
Maria Cipoll…, Agent, Coral Springs, FL
Tue Oct 2, 2012
It is very comun practice and a good reason that at the closing table, the owner will give the keys of your new property. It is not a good idea allow the previous owner to live there and worse for free. If you need to rent out that property, you are better off with a 12 months lease that will protect you better than one month for free.

Best of Luck,

Maria Cipollone

http://www.Flahomespecialist.com
2 votes
Juliana Lee, Agent, Palo Alto, CA
Fri Oct 5, 2012
Most home sales in Palo Alto are done using PRDS forms. PRDS provides the RSOAS (Seller Occupancy After Sale Addendum) form to local MLS agents. Most real estate attorneys advise against mixing CAR forms with PRDS forms. There are differences in some of contract terms for CAR and PRDS forms which can cause conflicts.

In a competitive bidding situation, allowing owner occupancy after sale can be a wise choice.

Juliana Lee
650-857-1000
Top 3 agent nationwide at Keller Williams
More home sales completed in Palo Alto over the last 10 years than any other agent
.
Web Reference:  http://www.julianalee.com
1 vote
Elena Talis, , Palo Alto, CA
Fri Jun 8, 2012
Can you close 30 days or so later to avoid the whole rent back situation? If this is not an option, you can either establish landlord-tenant relations or choose to take the possession of the property at later date. The difference is in the way you will be able to remove the current owner from the property if they don't honor the original agreement.

Find a realtor or a lawyer who will help you navigate this situation. It is not about the form...
1 vote
Andrea Wince…, Agent, Milpitas, CA
Fri Jun 8, 2012
Elena is correct in that I will agree it is not about the "form". Real estate agreements must be in writing. The most important aspect of what you are trying to do is not about the form you use but the terms and conditions of the agreement (and every aspect) of the situation needs to be clearly outlined and signed by both parties. The agent who wrote your original offer should be advising you on this as they are privy to the details of your transaction and what needs to be accomplished in order to protect your best interest.
0 votes
Cindy Davis, Agent, San Diego, CA
Fri Jun 8, 2012
Your Realtor should be able to provide the form...we have one available to us through the California Association of Realtors. Please ask him or her!
0 votes
Francis Roll…, Agent, Los Altos, CA
Fri Jun 8, 2012
there are several forms, which all deal with some kind of "rent-back" agreement.
The form matters, because depending on the one you use, you will provide for different things such as, for instance:
- the right to get the keys at close of escrow,
- a deposit for possible damage done to the house after close of escrow,
- whether or not it establishes a relationship of tenant / landlord, which could be important.

Your Realtor should be advising you on that important subject.
I hope it helps,
Francis
Web Reference:  http://bit.ly/KRpCp8
0 votes
Nina Daruwal…, Agent, Cupertino, CA
Fri Jun 8, 2012
Hello Buuyer,
Are you working with a Realtor? If yes, then your Realtor should be advising you on this....and going through the Items on the form and explaining things to you.
If not, then use: "Agreement to Occupy after Close of Escrow". This is Beyond ALL the other normal Purchase Offer Paperwork you would need to complete too.
Make sure there is a large enough deposit in Escrow by the Sellers, to be returned to Sellers AFTER you do your Final Walk-through, after they vacate the Property. This will protect YOUR Interest incase there is any damage at the property that needs fixing......not saying the Sellers will do anything...but this is standard procedure I would advise my client to do, to protect them.
If you are Not working with a Realtor, do give me a Call, I will help you through and beyond the transaction!
All the Best,
Nina Daruwalla
Web Reference:  http://www.ninadaruwalla.com
0 votes
Marcy Moyer, Agent, Palo Alto, CA
Fri Jun 8, 2012
You can use the lease after sale form. I usually advise my clients to charge $1 so that the co tract is enforcible as far as what happens if there is damage or the seller stays longer than the original agreement.
Marcy Moyer
DRE 01191194
Web Reference:  http://www.marcymoyer.co
0 votes
Terri Vellios, Agent, Campbell, CA
Fri Jun 8, 2012
Your agent should advise you. It depends on the purchase contract you used.

PRDS or CAR

There are a few, such as; Seller Occupancy After Close. Or interim occupancy agreement. Or addendum to the purchase contract.

Have an amazing day!
Web Reference:  http://www.terrivellios.com
0 votes
Andrea Wince…, Agent, Milpitas, CA
Fri Jun 8, 2012
This depends upon what contract was used in the initial purchase contract. Are you buying a home and not using a Realtor to represent you? Usually in these types of situations, it's called a rent back wherein the seller pays the buyers actual costs (mortgage, insurance, utilities, etc.) for the time span agreed to.
0 votes
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