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I have a rent back question. I am purchasing a home We will call it home A. Home A's owner had to find a new house causing closing to change and causing in a rentback situation for 3 days. I am also selling my home. We will call it home B. This is causing us to rent back to to them for 3 days.
The Sellers agent of my home has offered to pay for the rent back to my buyers of $150. The sellers agent will write up an addendum that states $150 will come out of her commission credited to me the buyer. We we close on our next house, we will then credit the buyer $150 to them.
What do I make sure is in the addendum to make sure that all parties are protected?
Should I require a security deposit?
When should I do a walkthough?
We would close on 8/10, but not take possession until 8/13. I just want to make sure there is no damage to the home and it's clean when we move in.
If it's only three days, I would postpone the closing so that you're not renting the house back to them. If you do go ahead and close, I would insist that the full proceeds be withheld until they relinquish possession of the house and you've done a thorough walk-through. It may be unlikely, but once you become a landlord and they're living in your house, things can really go awry.
I have a rent back question. I am purchasing a home We will call it home A. Home A's owner had to find a new house causing closing to change and causing in a rentback situation for 3 days. I am also selling my home. We will call it home B. This is causing us to rent back to to them for 3 days.
The Sellers agent of my home has offered to pay for the rent back to my buyers of $150. The sellers agent will write up an addendum that states $150 will come out of her commission credited to me the buyer. We we close on our next house, we will then credit the buyer $150 to them.
What do I make sure is in the addendum to make sure that all parties are protected?
Should I require a security deposit?
When should I do a walkthough?
We would close on 8/10, but not take possession until 8/13. I just want to make sure there is no damage to the home and it's clean when we move in.
Thanks!
Personally, I wouldn't sweat the $150 on either end of the deal. I've done that (and even much longer) without any "rental" agreement and never had a problem. As I see it, it's part of the purchase/sale contract. Closing is on date X, and possession is on date X + 3. No additional transfer of money or rental contract needed, IMO.
In fact, if we get into the legal issues of the matter (and I'm not a lawyer), if things were to go bad on the possession issue, it might be better NOT to have a separate rental agreement and simply regard the possession issue as part of the sale/purchase contract... which it is. If you went the rental agreement route and the seller didn't vacate by the called for date, he/she might claim "tenant's rights" and the buyer would be forced to go through the state law process for eviction of a "tenant" which might take months in some states.
Much better, IMO, to try to enforce the contract provision than to try to evict them with a rental agreement in place. Under the contract, the seller does NOT have renter's protection because they're not a renter. They're simply a seller who has contractually agreed to surrender possession of the house on date X + 3, and if they don't, they are in violation of the contract. Besides, if the seller is not going to give possession on date X + 3 for whatever reason, I don't think $150 would make any difference to them one way or another. A rental agreement simply gives them legal status as "tenants". Without the rental contract, they have no "tenant's rights", and are simply trespassers in illegal possession of your house.
Personally, I wouldn't sweat the $150 on either end of the deal. I've done that (and even much longer) without any "rental" agreement and never had a problem. As I see it, it's part of the purchase/sale contract. Closing is on date X, and possession is on date X + 3. No additional transfer of money or rental contract needed, IMO.
In fact, if we get into the legal issues of the matter (and I'm not a lawyer), if things were to go bad on the possession issue, it might be better NOT to have a separate rental agreement and simply regard the possession issue as part of the sale/purchase contract... which it is. If you went the rental agreement route and the seller didn't vacate by the called for date, he/she might claim "tenant's rights" and the buyer would be forced to go through the state law process for eviction of a "tenant" which might take months in some states.
Much better, IMO, to try to enforce the contract provision than to try to evict them with a rental agreement in place. Under the contract, the seller does NOT have renter's protection because they're not a renter. They're simply a seller who has contractually agreed to surrender possession of the house on date X + 3, and if they don't, they are in violation of the contract. Besides, if the seller is not going to give possession on date X + 3 for whatever reason, I don't think $150 would make any difference to them one way or another. A rental agreement simply gives them legal status as "tenants". Without the rental contract, they have no "tenant's rights", and are simply trespassers in illegal possession of your house.
This makes sense. We are doing them a favor because they need the proceeds from the sale of my house for there new house. Apparently, they need an extra day to verify funds or something.
But...what about the walkthough? How can I make sure the house isn't gonna be a mess?
This makes sense. We are doing them a favor because they need the proceeds from the sale of my house for there new house. Apparently, they need an extra day to verify funds or something.
But...what about the walkthough? How can I make sure the house isn't gonna be a mess?
I would do the walkthrough the evening before the closing. More than likely they will have begun packing small things but will still have the big stuff in place waiting for the movers to come on day X + 3. As long as the walkthrough didn't reveal any big damage issues and it appeared that they were preparing to move, then I'd go ahead and close as planned. The sellers are still required by contract to leave the place in good condition with all systems working, etc as called for in the contract. A contract provision is still legally enforceable after the closing date.
Where I spent most of my adult life, it was very common for possession to be given 30 days after closing. This was just what everyone put in the contract when they bought or sold a house unless the house was already vacant. There was very seldom a problem that I'm aware of and I had realtor friends who kept me informed since I was buying real estate fairly often back in the late '70's. Occasionally someone would move out after the 30 days and not leave the place as clean as they should, but that's no big deal in the grand scheme of things since most people are going to clean it well and perhaps paint before moving in anyway.
since after naming one Home A and another Home B, you never referenced them that way again, hard to say. And "Sellers agent" is the listing agent, though it sounds like you're calling the Buyer's Agent of Home B (your current personal residence that you are the listing agent for) the SA.
It *sounds like* you're saying you will pay your Buyer $150 for 3 days and you will charge your Seller (Home A) $150 for 3 days.
I would generally agree, since I think you're saying the BA for home B will actually pay your rent for you to his client, that you just $0 everything.
You can certainly require escrowing of some significant amount (say $10K) of your home A purchase until you gain possession of a clean and empty House A. If Home A Seller needs all your cash to buy their next home (ie, can't escrow $10K), then you have to adjust.
since after naming one Home A and another Home B, you never referenced them that way again, hard to say. And "Sellers agent" is the listing agent, though it sounds like you're calling the Buyer's Agent of Home B (your current personal residence that you are the listing agent for) the SA.
It *sounds like* you're saying you will pay your Buyer $150 for 3 days and you will charge your Seller (Home A) $150 for 3 days.
I would generally agree, since I think you're saying the BA for home B will actually pay your rent for you to his client, that you just $0 everything.
You can certainly require escrowing of some significant amount (say $10K) of your home A purchase until you gain possession of a clean and empty House A. If Home A Seller needs all your cash to buy their next home (ie, can't escrow $10K), then you have to adjust.
Who would hold the escrow money in this situation? I can recall checking into something like that once and I found that title companies and attorneys weren't interested in getting involved in petty squabbles over what's clean or isn't clean, or whether the seller took the drapes out of the house when he should have left them and what that's worth, and so on. Of course, for the right price, an attorney will do almost anything that's legal, and some might not even be that particular on what they'll do.
The landlord would hold the security deposit. The landlord should require a written lease & proof of renters insurance. And include an agreement to pay for utilities.
The landlord would hold the security deposit. The landlord should require a written lease & proof of renters insurance. And include an agreement to pay for utilities.
So the seller is going to let the buyer withhold 10 LARGE and buy renter's insurance for 3 days possession after closing? Good luck with that.
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