Early Buyer Possession: You’re moving in now?!

Early Buyer Possession: You’re moving in now?!

Finally! You’ve sold your house. One of the numerous guests you entertained during your open house parties has given you a down payment on the property, and will soon close the transaction. All seems well until the soon-to-be-owner asks if he can move in before the deal is closed. Is this right?

Surprisingly, this can happen. Sometimes the buyer is allowed to move in even before the deal is finalized. The final decision really rests on the seller but if you ask real estate agents, they will dissuade you from agreeing to this simply because … things can still go wrong. For example, the mortgage the buyer was waiting for wasn’t approved. It would be difficult to make someone who has somewhat settled in to move out at a moment’s notice, right? Another example, the buyer starts painting your walls icky yellow. The sale doesn’t push through and voila! You’re now stuck with a house with unpleasantly colored walls you will have to live with.

In case you do decide to let your buyer have early possession of your property, do take the necessary precautions. Have your agreement be put in writing and clearly state the duties and responsibilities of each party. Be very specific. As much as possible try to have these ironed out and formalized – how long will the buyer be allowed to stay in the property, is he to pay rent while he’s there (and when is the “rent”) due, is he allowed to make any “renovations”, can he bring in pets … all these must be written down and both you and your buyer should agree to these. If you have any questions about this form of living arrangement, it is best to consult with a real estate lawyer.