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Since I can't close on the house till sometime after government shutdown, I am renting to the buyer. Some may think it's a bad idea, but that's what I'm doing.
I have yet to sign any paperwork and have asked my realtor about it. She said she is waiting on the form. That kind of hit me as strange but who knows. This was yesterday that she said this.
I texted her this morning to let her know my internet/cable will be cut off sometime today so I won't be able to print, sign, scan and return any paperwork. I'll have to get with her before my move to sign whatever needs to be signed.
I am getting a little worried as time is running out. I want to go over it with a fine toothed comb before I sign.
I won't leave my house until I approve it and sign it. Are there any things that I need to be aware of before signing? This is my first time being a 'landlord' (lol) and hopefully it won't be for a long period of time.
I did ask her to put in there I won't be responsible for any repairs. I also asked her to up the earnest money or do something to make it hard for her to walk away from buying the house....not sure yet what she comes up with but I will make sure she does something.
Thanks Mr. Rational. I appreciate your helpful posts as always. Why respond at all unless you have something useful to add? Are you that bored on a Sunday?
What is my theme by the way? I have already decided that I am renting to the buyer. That's not what I wanted this thread to be about.....people telling me it's a bad idea. I have made up my mind about that so I am inquiring about the rental agreement. Must you make an argument about every single little thing?
First, why is the agent waiting for the "form". She can't find the pre settlement occupancy addendum or she's waiting for the buyer to return it to her?
You need a good lease. You are now a landlord. You need a good deposit and first month's rent...and also last if that's customary in your area (wouldn't be surprised if the tenant balked at this since he already paid toward purchasing a home and needs to keep money aside for any further downpayment on the house).
You should try to be sure he still will have that house downpayment since that house he's buying is also yours.
You will need a pet deposit.
You wll need references. A credit report of your own now. Criminal too. A person can mess up their own home and sell pot etc all they dare to... but not your rental home.
You need a good walk thru. The tenant needs to sign whatever forms you have regarding the walkthru as well and he will be given a copy.
You need to stipulate who will take care of the yard.
If the earnest money was not much, if there is no down payment, no skin in the game except payment for appraisal and credit report, that is not enough to let your home go to a tenant. A tenant could probably take your high end kitchen appliances and may make out better than going in.
An refusal of increase in earnest money from your buyer can be telling as well.
First, why is the agent waiting for the "form". She can't find the pre settlement occupancy addendum or she's waiting for the buyer to return it to her?
You need a good lease. You are now a landlord. You need a good deposit and first month's rent...and also last if that's customary in your area (wouldn't be surprised if the tenant balked at this since he already paid toward purchasing a home and needs to keep money aside for any further downpayment on the house).
You should try to be sure he still will have that house downpayment since that house he's buying is also yours.
You will need a pet deposit.
You wll need references. A credit report of your own now. Criminal too. A person can mess up their own home and sell pot etc all they dare to... but not your rental home.
You need a good walk thru. The tenant needs to sign whatever forms you have regarding the walkthru as well and he will be given a copy.
You need to stipulate who will take care of the yard.
If the earnest money was not much, if there is no down payment, no skin in the game except payment for appraisal and credit report, that is not enough to let your home go to a tenant. A tenant could probably take your high end kitchen appliances and may make out better than going in.
An refusal of increase in earnest money from your buyer can be telling as well.
Thanks Cully. I don't know what the realtor waiting on the form means? I'll need to inquire further about that. I have requested buyer puts a more substantial amnt of earnest money down. I agree, I should make it difficult for her to just walk away. If she is serious about buying then, like you say, she should have no issue with that part.
Wouldn't the fact that she is approved for this loan tell me she has good credit?
She still hasn't done a walkthru after I made all repairs.
Thanks again. You gave me some things to think about. I'm moving out in just over 24 hours so time is running out.
She may not being doing the walk thru because she's reconsidering. What is her current situation? I guess she's renting elsewhere at the moment?
At any rate just tell your realtor you're going to act...firm...not frustrated as in "I've got to do something" but firm as in "I'm going to do suchandsuch Monday morning."
Ask her where the form is. It can be sent online. What time. It may be beating a dead horse.
Does your buyer need to move in before closing? Is she out of her current place because of the expected closing?
I would approach it as if you were becoming a permanent landlord. Take all the usual precautions. Do a walk through when she moves in. That is the condition the house would need to be in at closing.
Haunt your agent. Make sure you get everything in place BEFORE you move out and she moves in. Don't leave it to later.
Do No Let the keys change hands until You are satisfied with the signed documents, the flow of money, and the assurances, in writing, that your tenant understands that this is a landlord/tenant situation. The fact that the tenant may also be a buyer of your home is irrelevant.
Quite honestly, you don't give us many details as to why this need for the 'buyer' to rent come about, but you do make it sound vaguely like the 'buyer' may be actually further from actually buying/closing than just needing a few days because the government is shut down, or whatever. Do your self a favor and treat this like a full rental. You make it sound like the 'buyer' could get in on a sweetheart rental deal and then never buy the house, for whatever reason. If that should materialize, then you have a HUGE issue with trying to sell a house with a tenant who thinks they are 'going to buy the house', and how helpful are they going to be with showings, cleanliness, etc.
Protect thyself to the max. Make sure your realtor understands that the tenant does not get access/keys until the rental conditions are satisfied, including signed papers, deposits, etc. And yes, by putting money up for security deposits may well affect the ability of the buyer to close their deal. That is NOT your problem. Don't cave to the sympathy factor....'I won't have a place to live', etc. BS. Don't let their problems become your problems.....because if you do, the problems will never go away.
Make sure that everyone... The renter, your agent, the renter's agent, knows that it is going to take at least five business days for the draft contracts to be prepared, signed, reviewed by your lawyers, and GOOD FUNDS to arrive in your bank account. Do not rush things through, and regret it deeply later on.
She still hasn't done a walkthru after I made all repairs.
I believe it was explained to you in another thread that walk-thrus aren't normally done until the day of or day before closing. There's no point to doing one earlier.
Last edited by MadManofBethesda; 10-06-2013 at 06:21 PM..
Quite honestly, you don't give us many details as to why this need for the 'buyer' to rent come about, but you do make it sound vaguely like the 'buyer' may be actually further from actually buying/closing than just needing a few days because the government is shut down, or whatever.
She's explained it in another thread. (This is another example of why the OP shouldn't create a new thread for each and every question/issue that arises pertaining to her house sale. It's difficult for readers/responders to keep abreast of all of the circumstances discussed in the various threads.)
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