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Updated almost 8 years ago,
Terms of Sales Contract,, loss of rental income if closing fails
Has anyone done a loss of rental income clause on a property if the buyer fails to close and backs out.
Example..
Rental property 4 units all are on month to month and buyer may request that property is vacant as of date they take possession. I would have to give notice and make sure all the tenants have vacated which can as we know take longer than 30 days if the tenants delay and I need to do court action.
My concern is if the buyer defaults and decided not to close, it would take me a few months to fill the units for rental.. I'd have loss or income for those months.
Has anyone done a purchase agreement where the buyer guarantees loss of rent for like 4 months if they back out, where the money for down payment is equal or greater than the 4 months of lost income, so it's like a escrow account and the seller would guaranteed those funds if buyer backs out.