What exactly does it mean to give a seller a certain amount of lease time

[Ismail Sogbaike]

what does a “2 month lease” mean because I’m currently trying to lock up a property in Dallas but the seller tells me there’s another person offering the same price as me but they are offering two months lease and I’m unsure of what that means exactly can someone please explain

[Bruce Lynn]

Yes...that means they want to sell you the property and then stay in it for a couple of months after closing.   There are pros and cons to this.

#1...you need to check with your lender to see what they will allow.  Some allow 30 days some 60 days maximum lease if you are buying to owner/occupy.   If you are buying investment property, then it probably doesn't matter.

#2...you want to make sure they have a place to go....some want to lease back and then not move out.

#3...FREE leasebacks were common 1=2=3 years ago, but I hate this. Some buyers did it to be competitive. In a more normal market like we are in now I would say they at least need to pay your PITI, so you're made even...and I would charges some daily amount of rent, even if small, and jump it up to something unreasonable if they stay over.

#4 the one nice thing if you lease back to them is that you should get a deposit and rent credited to you at closing.

Good luck.