Occupy Prior to Closing! This is NOT a good idea! Tammy Lankford lays out the reason why not in this Blog about letting the Buyer in prior to Closing. Liability, Deals Falling Through, Insurance, and so much more. You should hink long and hard - and get Legal advice - before agreeing to "Early Possession" when you are a Listing Agent or Selling Agent.
NO, no and more NO!
Why you ask? Well there are a multitude of reasons, but let me start with insurance issues. You have an insurance policy that indicates that you are a resident of this home either full time or as a second home, so you "rent" it and it burns down and the insurance company finds out you had a tenant in there without a landlord policy and they don't have to pay. Buyer who moved in perhaps even had homeowners policy in place, but wasn't owner of record, so his insurance may not pay.
Then there is the whole "you don't know someone until you live with them" thing. Same goes for a home. I have seen cases where deals feel apart because the hinge on the over door squeeked and the "tenant" buyer discovered this "defect" and want the seller to repair. Well an agreement had been signed saying it was "where is as is" upon occupancy then the "tenant" started using words like fraud and sue. Tenant didn't close and seller had to "evict" to put house back on market. Huge mess. Many repairs had to be made by seller. Yes, over a squeeky hinge. Everyone got into a "it's the principle of the thing" mindset and it deteriorated from there.
It's just simply not a good idea. I'd rather see a seller to agree to pay for a month storage for a buyer or a week in a local hotel. There are always better alternative solutions than to let a buyer move in prior to closing. It's not up to me to have the final say when this question is asked of my sellers, but I certainly let them know my opinion.
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Tammy Lankford, Broker/Owner
Broker License # 169695 Lane Realty License # H-11420
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Disclaimer: Nothing in the above blog article is to be construed as legal advice, tax advice, or financial advice. For legal advice see an attorney. For tax advice or financial advice see a tax attorney, certified public accountant, or other qualified professional.