Buyer occupying property prior to purchase

[Ricardo Polanco]

Hi everyone, I am a new user of biggerpockets, I am selling a renovated property. I have it under contract and the closing is supposed to be by the beginning of November because of some delays with the title company. The buyer requested a transfer from his job to the city where the house is but now the job wants him to start work next week, I told him we can probably let him and his family occupy the property prior to the closing date.  Is there any type of document I can make the buyer sign for these 2 weeks he will be occupying the property in order to cover myself? I won't be charging him any rent, he will just pay for the utilities used for that period. 

Really Appreciate any suggestions.

Thank you.

[Joe S.]

Quote from @Ricardo Polanco:

Hi everyone, I have a renovated property under contract and the closing is supposed to be by the beginning of November because of some delays with the title company, the buyer requested a transfer from his job to the city were the house is but now the job wants him to start next week, I told him we can probably let him and his family occupy the property prior to the closing date.  Is there any type of document I can make the buyer sign for these 2 weeks he will be occupying the property in order to cover myself? I won't be charging him any rent, he will just pay for the utilities used for that period. 

Really Appreciate any suggestions.

Thank you.

 There are probably going to be other posters that endeavor to layout paperwork suggestions so I will leave something for other keyboard heroes. :-)

With that being said what you were doing is definitely a gamble. There have been many sellers that have had success with such a gamble, but it’s still a gamble. Also, your post was a little unclear.
It almost reads as if you are buying a house and you haven’t closed on the house you are planning to resale. is this the case?

[Ricardo Polanco]

Hi Joe, thank you, I just made a clarification on the post. I am the seller of the property, and I am trying to accommodate the buyer and his family until the closing date.

[Lynn McGeein]

@Ricardo Polanco I would not grant buyer early possession without a large nonrefundable deposit. Ex., if 20% down payment in purchase agreement, have him place all those funds in escrow at the settlement company with clearly written signed addendum that should buyer not close by x date for any reason, those funds are nonrefundable and to be released to you, but all credited to buyer at settlement if they close. Not saying there will be issues, but they could move in, decide they hate their new job, or the layout of the house, or trash the place, and they just stay without paying or move out and move on with free temporary housing while they find something better. If they’re serious about closing, placing funds in escrow early and risk losing if they don’t close shouldn’t be a problem.

[Ricardo Polanco]

Thank you very much Lynn, it makes a lot of sense. I will definitely consider it.