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Updated over 3 years ago, 05/28/2021

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236
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Tom Fidrych
177
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236
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Buyers of home want to move items in before closing

Tom Fidrych
Posted
I'm in the process of selling a home. The buyers had a contingency of closing on their place first, using the proceeds for 15% down with 85% coming from a Fannie loan. Their home just closed and they are renting their house from the buyer for the next month. We were to close on June 4th but because the sale of their place paid off a Fannie loan that was in forbearance, Fannie now requires there be a 30 day waiting period  before a new Fannie loan is issued. We extended the closing date to July 1st and had the buyer surrender the $2k in earnest money in the event the deal doesn't close.
The buyers agent is asking that they be allowed to move their items into the house on June 28(but not occupy it), 3 days before closing, to help them with the move. They are an older couple and will need 3 days to move.
So they have possession of 15% from the sale of their place, are approved for the loan and seem excited to move in but I'm reluctant to allow their items to be placed inside before closing. If I allow them, should I ask for an increase in the earnest money.

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Lien Vuong
Agent
  • Real Estate Agent
  • Boston, MA
1,652
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Lien Vuong
Agent
  • Real Estate Agent
  • Boston, MA
Replied

This is not completely unheard of but you can tell them to only store the items in a garage space or something and have your attorney prepare a Non-Occupancy agreement when you execute to make sure they don't start living there. In most cases people will charge 'rent' for these days, say $100-150 daily for the storage fee. 

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Bob Okenwa
  • Real Estate Agent/Investor
  • Peoria, AZ
2,461
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Bob Okenwa
  • Real Estate Agent/Investor
  • Peoria, AZ
Replied

Just say no. Don't open this can of worms. If they want to store their items, they can rent a storage locker. Storage facilities are pretty ubiquitous these days. They can move their things into the home once escrow is closed, the transaction has been recorded, and the funds are wired to your account. 

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Bill B.#3 1031 Exchanges Contributor
  • Investor
  • Las Vegas, NV
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Bill B.#3 1031 Exchanges Contributor
  • Investor
  • Las Vegas, NV
Replied

I agree with @Lien Vuong. Most of the hassle of moving is from place to place. Nobody woulda want to move twice in a week using a storage unit as a way station. 

You don’t want to end up with an unwanted tenant.

The alternative would be a double market rent, paid in advance for 3 months, applied to the purchase if the closing occurs within “X” days of the scheduled closing. (You’re not trying to take advantage of them if the bank screws up over 2 days but you want them out 6 months of rent when you kick them out in 3 months.)