Lease Back potential problems

[Joel Brown]

I closed on a house in Southern Utah that was recorded 11 days ago. It was in pre foreclosure so I helped the seller keep their equity by purchasing before being foreclosed. My mortgage company took its own sweet time and the seller lost their lined up rental to someone else. I had given her 14 days in the selling contract before I take possession of the property, as I knew she would need money for a deposit that she did not have. She had likely $50-60k now because of selling the house to me. She has a dog and a boyfriend (will poor credit and other issues) that make it hard for her to find a rental. I’m having a hard time kicking her out especially around Christmas. I’m contemplating having her give a security deposit and allowing her up to 4 weeks as a week to week tenant and requiring her to get renters insurance, pay up front, and give the dog up to be able to find a rental. She still has marginal credit but the dog and boyfriend and dragging her rental search nowhere. What are the potholes I could hit with this option? If I limit her to 28 days does that make eviction/ trespassing easier to get her out if it comes to that in contrast to a month /30 days? Utah I understand had laws leaning toward the landlord. Any suggestions?

[Justin Morgan]

Hello from Southern Utah @Joel Brown

Personally I would be consulting our attorney on this one.  We can recommend a local one if you need. 

I do not see a difference between giving her 14 days and giving her 28 days other then you are dealing with a purchase and sales agreement vs a rental agreement when you move to the 28 days.  My hunch says avoid the rental agreement and keep it to the purchase agreement with 14 days to be out.   Again I would consult council on this. 

In this situation, we always would suggest an escrow holdback agreement with penalties for now leaving when agreed.  Dang it!  She had lots of equity that could have been used to motivate her. 

If you need someone to serve them in person or make any local recommendations, let me know.