Is it safe to allow the buyer to move in early?
In some cases a California condo and townhome buyers may request the seller to move in early prior to closing the deal. Should the seller accept? Absolutely not. Here is only a partial list of the things that can go wrong:
The California condo or townhome buyer's loan might fall through. If this happens they buyer will have to reapply for a condo loan which will take time. It may be that the buyer cannot qualify for a condo or townhome loan in which case they have to be kicked out. If they do not want to leave they will have to be removed legally which can take up to 6 months.
Buyers always want to change everything when they first move in. The buyers moving to California condos or townhomes early may change the seller's house without obtaining approval, tear things down, bring pets, lease the place out to other family members and friends, or in the worst case wreck these houses. They may do things sellers least expect.
If a buyer gets injured in the property the seller may be liable in a lawsuit.
Utilities will still be owed in your name. You don't want to change utilities over until the California house is sold yet you are responsible for paying for the new buyer's utilities while they live there. You will have to collect payment from them and then that proves that they are living in the house so it will be very difficult to remove them if they do not perform even with a written contract.
Buyers may not do upkeep on the lawn, pool and other aspects of the house. While the buyer is staying in the house if they do not maintain it the seller will have to spend more time and money getting the California condo back into the shape it was in before the buyers came.
Sellers will still have to make payments on the home insurance and condo and townhome loan. Even though the buyers are living in the property these costs do not disappear until title is transferred to the buyer.
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 | © John-Robin Middlebrook. Last updated April 2008.
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