A Buyer Asks a Seller if He Can Move In Before Settlement….Hmmm…

 A Buyer Asks a Seller if He Can Move In Before Settlement….Hmmm…

So what comes to mind when you hear this…  Do you think of a scary movie, where the scary dude jumps out at you from around the corner, and your hair stand up on its end as you get knocked off your feet?

What would you say?  What would you do? 

If the buyer wants to move into the home prior to close of escrow, this is considered “occupancy prior to close of escrow”

It can be done, but it is highly discouraged.  For many reasons…

If the buyer moves in prior to close of escrow, and trips and falls in the house…  will the homeowners insurance policy cover it?

If the buyer moves in prior to close of escrow and they find something about the house that they don’t like, they might start complaining and tell the seller to fix the holes in the wall…  Or the stains in the carpet, or get cold feet and decide they don’t want to buy the house anymore…

If the buyer moves in prior to close of escrow and starts doing some demo work, or remodeling…or moves junk in the garage for storage and makes a mistake, or breaks something…  OR some of it gets stolen..  Who is responsible?

If the buyer moves in prior to closing and discovers something that was undisclosed, it could cause an issue with the closing. I am not talking about non-disclosed items, I am talking about things that were wrong with the house that the seller had no knowledge about, so they did not need to disclose.  Like leaks, or termite damage (assuming there were no inspections).

So take a long hard look at what could happen…  Then it is up to you to decide whether to not to do it.

If you decide to do it, make sure you sign a prior to occupancy lease agreement.  Get them to give you a deposit.  Get them to pay rent.  And be sure that you get a HOLD HARMLESS agreement if you agree to any occupancy: either furniture moving in (ie: can we store things in your garage until we close?) or actually them moving in.  Encourage them to talk to a RE Law attorney and their insurance agent.

Or just not do it at all…  That would be my recommendation.  But we are not here to convince you of anything.  We are here to provide you with the knowledge, so you can make an educated decision on moving forward. For questions on this topic or any others, contact me!

Harrisburg PA Real Estate Expert

Ken Huebsch is your premier real estate agent in the Greater Harrisburg area.  I am a specialist in Harrisburg real estate  as well as the communities of Palmyra, Hershey, and Hummelstown.  My wife Leslye and I have 40 plus years of experience serving our clients -We KNOW Harrisburg. When you plan to buy or sell Harrisburg area real estate, allow us to work for you.  We are dedicated professionals and are here for your success.  For more information on how we can best serve your real estate needs, please complete our online contact form or give us a call.  Also, check out what our fabulous clients have to say about us on our testimonials page!

Cell: 717 514-1793
email: mailto:Ken@KensHomesales.com

presented by KensHomesales.com

 

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