Real Estate / Home purchasing
The buyer is asking the seller (Me) for 5 days to move out after purchase of Home is complete and they have their money. My offer is cash out.
My concerns is the home would be in my name for 5 days, which I would be liable for injuries, damages etc..during that time.
I stated I don't agree to those terms. There response was instead of 5 days how about 2? Or they will take another offer (which they don't have per info from my realtor)
I told my Realtor I will not budge unless they provide Ins to cover their time in the house after closing & I'm not responsible for any liabilities.
Realtor said I was being Paranoid...I ignored that remark!
I have USAA INS, they informed me I would be covered if I decide to allow this but I would advice against it.
I told my realitor I'd consider if they could provide their own insurance during the time there in the house.
In a purchase/sale transaction... risk of loss to the home, and any/all insurance claims thereon are the responsible of the SELLER. If the purchaser takes possession PRIOR to the closing, they then have the responsibility and obligations...and the risk "shifts unto them". What you are describing is a "post possession agreement", whereby you will be the OWNER of the home...the Seller (former owner) will remain in possession of the home for 2 days....presumably leaving money in escrow...so that when they vacate after the 2 day period....if there are any damages to the premises...materialized during those 2 days....the escrow can be looked to as remedy. There is also, presumably, a provision in the post closing escrow agreement, that for every day thereafter the 2 day period that the seller remains in possession, daily penalties (usually $150 per day)..are remitted from the escrow account to the PURCHASER/OWNER. As far as risk and fear of same...there are issues aside from the insurance. Even if you have the seller maintain insurance in their name...essentially being responsible for any/all occurrences that should befall the premises....you are still the record OWNER of the home at this point. Liability can still attach to you. Additionally...there is no guarantee that the seller WILL leave after the 2 day agreed upon time frame. I have seen situations where 2 days can become 2 weeks. That being said..."paranoia" is improper terminology. You are being "risk conservative" and want to avoid any problematic situations subsequent to closing. If the seller needs to stay in the home 2 days after closing...simply agree to close on a date when the home will in fact be left vacant and broom clean. This will assure 1). no shifting of burden will occur; 2). no post possession agreement need be entertained; 3). no potential of holdover can materialize. In summation....agree to close when the seller desires....tailoring/specifying the closing date to reflect said date...for a date which the seller can guarantee they will have vacated the premises. Be sure to have any "holdover possession" purposefully omitted form the contract. Good luck to you.
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