Security Deposit for Sellers who are temporarily renting?

[Alex Tang]

When a Seller wants to rent out the home until their new place is ready, is advisable to charge them a security deposit? Since a walkthru prior to closing doesn't sound useful, would a security deposit offer similar protection? If so, how do you determine what's an acceptable condition that the Seller has to leave the home in?  TIA

Alex

[Bill B.]

Assuming the seller is walking with a big check I’ve had them leave $5-$10k in escrow with title company. I also write a lease with a quickly escalating rent. (What if they say they are staying a month and don’t move out?) are you buying as an investment or a primary? If primary you’re going to promise to move in with 60 days. What if they won’t move out?

I also fear the unseen damage from the house not being empty. And I assume there is always some damage while moving out, even if it’s your “useless friends” helping you pizza and soda. On the other hand I’ve done normal 2 months rent security deposits for sellers that want to become long term tenants.