Seller Wants 30 Days Possession After Close

[Richard Queen]

I'm purchasing a single-family house for a rental unit using a real-estate agent through the MLS. The seller refuses to give possession at close citing he has too much risk if financing falls through and he's all packed to leave. He wants 30 days after close to move out and my real estate agent is saying it is "normal" in this market. Seems like I'm carrying a lot of risk with zero recourse for any property damage. Agent says asking him to pay rent is "not typically done".

I currently have 7 other rental units but they've all been purchased FSBO or other types of deals - this is the first through an agent on the MLS. Chances are it would turn out fine but I am concerned about the risk and it also delays me putting a renter in for another month.

What have people seen in other markets?  Is this typical?  Are there things I should ask for?  I'm in eastern KY.  Thanks!

[Patricia Steiner]

It's called a Post Occupancy - and it has an Agreement for the terms during that stay.  Rent is customary - and expected (maybe the realtor would like to have them stay at his/her house for free for 30 days...be sure to ask).  The utilities stay in the seller's name, rent is paid upfront at closing, and a security deposit is needed because you are not able to do a Final Walk-Through of a vacant property prior to closing.

Please secure a Post Occupancy Agreement and have it executed before the sale.  You can also decline their request; it's quite commonly done.  There is a risk with allowing the seller to stay.  What if 30 days isn't long enough?  What if there is damage when they move out or they leave things/trash behind?  Will the cost of moving be higher in 30+ days for you ('tis the season is almost here!)?  Be sure to have it all in writing and make it profitable to do.

Congrats on your acquisition.