Advice for an “Occupy Prior to Closing Agreement”
Posted on | July 5, 2010 | No Comments
Ah, the Occupy Prior to Closing Agreement. What a delight.
Seriously, though, if you are selling a home, and the buyer wants to move in before it closes, there are many things you need to consider.
- Check with your insurance company to make sure you don’t need to get a landlord policy. The Buyer needs to cover their own contents and liability.
- Whose name will the utilities be in?
- What is the per diem amount you will charge them to live there, and when does this end?
- What if the sale falls through? How long do they have to move out?
- What if the sale falls through, they move out, and they have done damage to the home? It’s a good idea to ask for an amount of money, separate from the earnest money, that is refundable ONLY at closing.
- The Buyer should not make alterations to the home (painting, etc.) prior to closing.
- The Buyer should accept the property in its current condition BEFORE taking possession, and taking possession should mean that they are satisfied with the condition of the property.
- Who is responsible for maintenance?
And the list goes on. Sometimes this is a solution that works for all parties, so I’m not saying that you should refuse to agree to it. Just be careful, and make sure you have all the bases covered. There are a lot of opportunities for issues to arise, and the better prepared you are, and the more protective your written agreement is, the better off you’ll be.
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