Potential deal, but seller wants to stay 60 days

[Tim Lindstrom]

I have a potential deal on a property I want to rehab and sell.  The seller is asking if they can stay up to 60 days after closing (we would have to agree on concession), so they can locate a new place to live.  They need the money from the sale for moving expenses.

Anyone with experience letting the previous owners "hang out" after closing?  Is this a bad idea?

[Luka Milicevic]

I had just had a friend who did this on his first residence he ever purchased. I told him it was a bad idea. He called his insurance agent and lawyer to discuss and they both told him he is liable for whatever happens to them while they are there since it's his property. 

He changed his insurance policy to compensate. They stayed for 30 days and everything was fine. They paid him rent (with no official lease) but everything was in writing from the purchase of the property.

I personally would never do such a thing, but it has been done. Just make sure everything is in writing and that you are covered for things that might go wrong.