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We're buying a house cross country, which causes its own set of woes, and the seller wants to keep possession for 48 hours after close. My gut tells me that this is a bad idea, but it's a hot market and refusing could cost me this deal.
Is this common in Colorado or your neck of the woods? Does it usually work out? Is there anything I should ensure is in the contract to protect myself and the property after close?
I do have a (fabulous) buyer's agent working with me, and an attorney to review the contract; I'm just looking for other points of view.
I'd be very sceptical. If the place burns down during those 48 hours or if anything else bad should happen, (maybe they start taking the lumber from your deck, removing appliances, make a mess of some sort etc. (any number of things). Uhh, uhh!
We both signed on the line, now hand me the keys and have a good day! Nice doing business with you.
This used to be the norm in Colorado.
Surprised me when I moved from Massachusetts where keys were transferred at the closing ceremony.
The number of problems during multiple decades appeared to be very low.
We did it when we sold our house in 2011.
Not because it was a hot market, but because "buyers" were known to walk the morning of closing (happened to our alley neighbor).
Our buyer seemed to be OK with it and we got to move everything after closing.
He got keys at closing and we moved stuff out and cleaned. Also left him a bottle of Domaine Chandon in the frigo.
My guess is they need to do simultaneous closings on that house and a new one, and they can't move your closing date because they need the funds from your purchase to finance their purchase. And of course they can't move their things into their new house before that transaction closes and they don't want to have to move everything twice.
I'd talk to your attorney and have him or her draft up something to cover you in terms of things like any damage they do, and then go ahead. It's really not that uncommon for sellers to rent back for some period of time after closing and as Dave said, it doesn't seem like there has been a lot of issues with it.
[quote=emm74;39210249]My guess is they need to do simultaneous closings on that house and a new one, and they can't move your closing date because they need the funds from your purchase to finance their purchase. And of course they can't move their things into their new house before that transaction closes and they don't want to have to move everything twice.
I'd talk to your attorney and have him or her draft up something to cover you in terms of things like any damage they do, and then go ahead. It's really not that uncommon for sellers to rent back for some period of time after closing and as Dave said, it doesn't seem like there has been a lot of issues with it.[/QUOTE]
This. I am about to put our house in Denver on the market and move to Texas. My kids get out of school the first week of June and I will be packing and loading mid June. If a buyer wanted a close date earlier than when I could leave in mid June, I would only consent to that if we closed and then they rented the home back to me for X days or whatever. I will leave only when I am ready to leave.
Like emm74 says, you can just have the contract address any potential for damage between closing date and the date you take possession. Not dissimilar from the contract having provisions for damage that occurs between the Under contract date and closing.
We're buying a house cross country, which causes its own set of woes, and the seller wants to keep possession for 48 hours after close. My gut tells me that this is a bad idea, but it's a hot market and refusing could cost me this deal.
Is this common in Colorado or your neck of the woods? Does it usually work out? Is there anything I should ensure is in the contract to protect myself and the property after close?
I do have a (fabulous) buyer's agent working with me, and an attorney to review the contract; I'm just looking for other points of view.
It's not that uncommon. As stated I would make a agreement that they will be held responsible for any damage to the property. Can you extend the closing another 48 hrs?
I had a buddy buying a house.mthe lady wanted to rent back the property for 60 days. After closing. I told him to do a 90 day escrow. It worked out to close on the last day she was there and she got the 60 days
It's not a big deal. My closing was on a Wednesday evening, the movers came Thursday, and the house was immaculate and empty by Friday at noon. I called the new owner to tell him when I was leaving, left the back door unlocked and the keys in a kitchen drawer. It worked out for everyone.
I'm in the contract right now in Colorado for a condo (I'm the buyer) and seller will have possession for 9 days post closing. We signed Post Closing Occupancy Agreement and we are fine with the arrangement. In my case it helps that I met the seller, who is an elderly lady with mobility issues, and I know the reason she wants this arrangement is to allow some time to wire proceeds from the sale to her children as she is leaving the country. She can't wire the money and leave on the same day.
But short answer is - yes, it's common. When we were buying our current house sellers also asked about staying after closing but for a longer period with a lease back. We said "no" as we needed the house right away. Of course, it was a totally different market back then (2012).
I recently considered a condo where seller wanted to stay for 45 days without rent. They were under contract next day, with $2K above asking AND it was a cash buyer. It's a huge seller's market right now, and as a buyer you have to deal with it.
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There is a form for that
