Jaxie, Home Buyer in Chester, IL

Should we allow seller to remain in the home for 2 weeks after closing? She did accept a low offer. Her agent is also acting as ours, so I ask here.

Asked by Jaxie, Chester, IL Sat Jul 23, 2011

The seller is a former agent, so I think she knows this is not ideal. We did not get an agent, so her's is working as a duel agent. I think she is asking for the 2 weeks because she thinks we will close quickly and needs time to find something, the house has only been on the market for a month. She accepted 15% below asking.

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10
Suzanne Hami…, Agent, Orland Park, IL
Sat Jul 23, 2011
I would only do this if it is not going to cost you anything and if you want to. But why not just delay the closing two weeks? But, if you want to, get a good rental rate and make sure the full rent is paid at closing for the two weeks. Plus, ensure that there is a good amount - at least one month's rent in escrow in place held by the title company or attorney, if possible, that can be ensure the home is well cared for and left in acceptable condition. Also ensure you have an agreement as to the condition it would be left. And please have an attorney draft the agreement. It is bad enough to deal with a dual agent on this. To make sure your interests are protected, have everything spelled out. Do a walk through now and make sure everything is clear in the original contract and the agreement as to the condition of the property - and take very good pictures and make a list. It should be fine, but just make sure you are protected. And to ensure it is only 2 weeks, put a high penalty for additional time - like double the rent from a daily basis. But only do it if it is not going to cost you anything
2 votes
Ranj Mohip, Other Pro, Chicago, IL
Sat Jul 23, 2011
In Illinois, this is called post-closing possession. It's not common, but it's not unheard of either. It often comes into play when a seller has to sell their place, purchase a new place, and the purchase gets pushed back. If you are going to allow this, you will want to enter into a written post-closing possession agreement. Your attorney can draft this. When we do this for clients, we charge 1/30th of the buyer's principal, interest, taxes, insurance, and assessments per day as rent, collected at closing. At the end of the two weeks, I would suggest a daily rate of $500. This would deter your "tenant" from staying longer than 2 weeks. Finally, an escrow should be held just in case your "tenant" damages the property before moing out.

Attorney Ranj Mohip is a Chicago real estate attorney. The information in this answer is general information and is not intended as legal advice. Further, answering this question or otherwise contributing as a member of Trulia.com does not create an attorney-client relationship. Remember--consult the best real estate attorney in Chicago or in your respective area. Contact us at http://www.ranjmohip.com for more information.
1 vote
Debra (Debbi…, Agent, Livingston, NJ
Sat Jul 23, 2011
Hi Jaxie

What you are asking about is called a "use and occupancy".
In my area, this would only come into play if an agreement is drawn up by an attorney.

The seller would be expected to pay an amount equal to your per diem costs for the time period they remain in the home - it essence, they are paying rent for the short term they remain. This agreement should not cost YOU any money.

You should do 2 walk thrus - one just before the closing to note any items that might not be working at that time, .and again at the time the person vacates the property.

A certain amount of money would be held in escrow to cover any potential damage or breakage that might occur - much like a security deposit.
Utilities would remain in the name of the seller until she vacates.
There should also be per diem penalties if the seller doesn't vacate on the agreed-upon date.

Whether you want to allow the seller to remain under these circumstances is up to you......just make sure you have a written agreement that protects your interests and clearly defines the terms.

Good luck with your home puchase.
1 vote
Laura Feghali, Agent, Stamford, CT
Sat Jul 23, 2011
Hello Jaxie,
If you don't mind waiting an additional two weeks to occupy the property then something could be worked out between the parties for the seller to remain for that extra time. Just make sure that it is in writing so that the two weeks doesn't turn into 2 months.

You may wish to have the seller pay you a daily rental rate for the days past the closing. And, the seller should keep her home owner's insurance current until she vacates. This way you won't be responsible for any damages she might cause during the extension period.

Hope that helps.

Laura Feghali
Prudential Connecticut Realty
1 vote
Jaxie, Home Buyer, Chester, IL
Sat Jul 23, 2011
We thought she might need the money she gets at closing for a new place, and that would be why we couldn't just ask for later closing date. This is our first time, though.
0 votes
Sarah Klamm, Agent, Wellsville, KS
Sat Jul 23, 2011
As you can see in some of the other answers, these types of situations can have several issues. One is that your lender might not let you delay posession. You wouldn't be able to do a walk through in the empty home to make sure that nothing had changed since your inspections. The price she accepted was her decision and the closing date should have been negotiated within the original contract and counter offers.
0 votes
Dallas Texas, Agent, Dallas, TN
Sat Jul 23, 2011
In many instances YES for seller to remain requires amendments to sales agreement be signed.

With lenders now a days can trust them they could pull the plug 24 hours prior closing determine NOT to approve your mortgage property owner all ready moved out

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes
Andrea Cutler, Agent, Newton, MA
Sat Jul 23, 2011
I would only do it with a good use and occupancy agreement in place with a high rent rate.
0 votes
Gerard Carney, Agent, Spring Hill, FL
Sat Jul 23, 2011
Absolutely not! Tell them to delay closing for two weeks otherwise get out upon closing!
0 votes
Dp2, , Virginia
Sat Jul 23, 2011
Keep in mind that your bill still would begin whether or not you'd take immediate possession. If you do decide to let her stay, then you probably should have an attorney draw up an agreement. After all, you don't want that 2 weeks to turn into 12 weeks.
0 votes
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